Bubbles and overshooting crash

Dai, Li and Zhou, Peng ORCID: https://orcid.org/0000-0002-4310-9474 2016. Bubbles and overshooting crash. Business and Economics Journal 7 (4) , 263. 10.4172/2151-6219.1000263

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Abstract

This paper reviews a model of bubbles under the assumption of heterogeneous rational traders. In the presence of dispersion of opinions, or sequential awareness, financial bubbles are justified by the interactions between rational arbitrageurs and behavioural traders. Timing is a very important component in the trader's strategy. This model is then extended to explain both bubbles and overshooting crash.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	OMICS International
ISSN:	2151-6219
Date of First Compliant Deposit:	22 December 2016
Date of Acceptance:	17 December 2016
Last Modified:	05 May 2023 13:59
URI:	https://orca.cardiff.ac.uk/id/eprint/97031

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