<div class="csl-bib-body">
<div class="csl-entry">Possnig, C. (2016). <i>Booms, busts and informational cascades in a sequential trade model</i> [Master Thesis, Technische Universität Wien; IHS Wien]. reposiTUm. https://doi.org/10.34726/hss.2016.37477</div>
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dc.identifier.uri
https://doi.org/10.34726/hss.2016.37477
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dc.identifier.uri
http://hdl.handle.net/20.500.12708/4028
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dc.description.abstract
This paper analyzes a security market with sequential trade and a specialist dealer. I study how heterogeneous Bayes-rational agents with private signals interact if allowed to decide multiple times. I show that in this setting, informational cascades can occur. That is, all agents choose to follow public information over their private signal. I introduce a shortselling constraint on the dealer side, i.e. finite supply of the traded asset. When this constraint binds, cascades can be terminated endogenously in the model.
en
dc.language
English
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dc.language.iso
en
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dc.rights.uri
http://rightsstatements.org/vocab/InC/1.0/
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dc.subject
Informational Cascades
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dc.subject
Herding
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dc.subject
Sequential Trade
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dc.title
Booms, busts and informational cascades in a sequential trade model