Economics, Econometrics and Finance
8 years ago

Herd behavior in financial markets leads to volatile fluctuations

Economic Research Guide
The Herd Behavior in the Financial Market and Information Spread
Li Hong

Paper Summary

Understanding herd behavior in the financial market is crucial for preventing sudden fluctuations. This study focuses on how information spreads to influence herd behavior. The researchers aim to uncover the origins of herd behavior and develop strategies to avoid it. By examining the complexity of herding, they found that information dissemination plays a key role in driving herd behavior in the financial market.

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