Coordinated investing with feedback and learning

Goldbaum, D

Coordinated investing with feedback and learning

Goldbaum, D

Permalink

Publication Type:: Journal Article
Citation:: Journal of Economic Behavior and Organization, 2008, 65 (2), pp. 202 - 223
Issue Date:: 2008-02-01

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

Adobe PDF

Download full textAdobe PDF (482.96 kB)

View on publisher's site

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Goldbaum, D https://orcid.org/0000-0002-4228-1408	en_US
dc.date.issued	2008-02-01	en_US
dc.identifier.citation	Journal of Economic Behavior and Organization, 2008, 65 (2), pp. 202 - 223	en_US
dc.identifier.issn	0167-2681	en_US
dc.identifier.uri	http://hdl.handle.net/10453/9971
dc.description.abstract	This paper introduces assets for which the intrinsic value is endogenous to the amount of funding attracted. A rational expectations equilibrium is developed. Additionally, simulations of the model based on bounded rationality explore the different market behavior under fundamental and momentum based investing strategies. Both strategies produce herding characteristics. The herding under the fundamental strategy approximates the optimal investing of a rational central planner. The momentum strategy results in suboptimal economic development. © 2006 Elsevier B.V. All rights reserved.	en_US
dc.relation.ispartof	Journal of Economic Behavior and Organization	en_US
dc.relation.isbasedon	10.1016/j.jebo.2004.10.013	en_US
dc.subject.classification	Economics	en_US
dc.title	Coordinated investing with feedback and learning	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	65	en_US
utslib.for	140207 Financial Economics	en_US
utslib.for	1401 Economic Theory	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1403 Econometrics	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Strength - QFRC - Quantitative Finance Research Centre
utslib.copyright.status	open_access
pubs.issue	2	en_US
pubs.publication-status	Published	en_US
pubs.volume	65	en_US

Abstract:

This paper introduces assets for which the intrinsic value is endogenous to the amount of funding attracted. A rational expectations equilibrium is developed. Additionally, simulations of the model based on bounded rationality explore the different market behavior under fundamental and momentum based investing strategies. Both strategies produce herding characteristics. The herding under the fundamental strategy approximates the optimal investing of a rational central planner. The momentum strategy results in suboptimal economic development. © 2006 Elsevier B.V. All rights reserved.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/9971