Now showing items 1-2 of 2
Do Behavioral Biases Affect Prices?
(Blackwell Publishing, Inc.Wiley Periodicals, Inc., 2005-02)
This paper documents strong evidence for behavioral biases among Chicago Board of Trade proprietary traders and investigates the effect these biases have on prices. Our traders appear highly loss‐averse, regularly assuming ...
Asymmetric Price Movements and Borrowing Constraints: A Rational Expectations Equilibrium Model of Crises, Contagion, and Confusion
(Wiley Periodicals, Inc.Blackwell Publishing, Inc., 2005-02)
This study proposes a rational expectations equilibrium model of crises and contagion in an economy with information asymmetry and borrowing constraints. Consistent with empirical observations, the model finds: (1) Crises ...