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dc.contributor.authorBianchi, Milo
dc.contributor.authorJehiel, Philippe
dc.date.accessioned2011-01-04T11:30:15Z
dc.date.available2011-01-04T11:30:15Z
dc.date.issued2010
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/5361
dc.language.isoenen
dc.subjectSpeculative bubblesen
dc.subjectcrashesen
dc.subjectbounded rationalityen
dc.subject.ddc332en
dc.subject.classificationjelC72en
dc.subject.classificationjelG12en
dc.subject.classificationjelD84en
dc.titleBubbles and Crashes with Partially Sophisticated Investorsen
dc.typeDocument de travail / Working paper
dc.contributor.editoruniversityotherPSE; France
dc.description.abstractenWe analyze bubbles and crashes in a model in which some investors are partially sophisticated. While the expectations of such investors are endogenously determined in equilibrium, these are based on a coarse understanding of the market dynamics. We highlight how such investors may endogenously switch from euphoria to panic and how this may lead to equilibrium bubbles and crashes even in a purely speculative market in which information is complete and it is commonly understood that the bubble cannot grow forever. We also show how this setting can match stylized empirical facts, and we investigate whether bubbles may last longer when the share of fully rational traders increases.en
dc.publisher.nameUniversité Paris-Dauphineen
dc.publisher.cityParisen
dc.identifier.citationpages35en
dc.relation.ispartofseriestitlePSE Working Papersen
dc.relation.ispartofseriesnumber2008-62en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelEconomie financièreen


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