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We empirically evaluate a behavioural model with boundedly rational traders who disagree about the persistence of deviations from the fundamental stock price. Fundamentalist traders believe in mean-reversion, while chartists extrapolate trends. Agents gradually switch between the two rules,...
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bubbles and similar price dynamics in all treatments (with moderately lower prices in the treatments with a long horizon) …
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price dynamics with recurring bubbles in all treatments …
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bubbles for a certain setup of a feedback trader model. Moreover, similar studies very often face the criticism that chartists … might run out of money before the emergence of bubbles, as these studies typically analyze the role of chartists with …
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calculations, they analytically prove that the presence of fundamentalists is not sufficient to avoid asset price bubbles. The …
Persistent link: https://www.econbiz.de/10011963816