Cipriani, M. and Guarino, A. (2009) Herd Behavior in Financial Markets: An Experiment with Financial Market Professionals. Journal of the European Economic Association, 7, 206-233.
https://doi.org/10.1162/JEEA.2009.7.1.206

has been cited by the following article:

• TITLE: How the Asymmetric Information Creates Bubbles in Stock Market?

  AUTHORS: Haoxian Wang, Xingyuan Wang, Fan Bu, Guanzhou Wang, Yanqiao Pan

  KEYWORDS: Information Asymmetry, Herd Behavior, Asset Bubbles

  JOURNAL NAME: Open Journal of Social Sciences, Vol.6 No.8, August 24, 2018

  ABSTRACT: We analyze the mechanism of creating bubbles under asymmetric information through literature review. Our hypothesis is that information asymmetry will lead to herd behavior and then herd behavior will create bubbles. We find papers and evidences to support our hypothesis. However, after those literature reviews, we consummated our hypothesis and gave a conclusion. Our conclusion is the information asymmetry which can lead to herd behavior and there is a transaction phase. Herd behavior can create bubbles only when shocks come into the market. The bubble will enhance the herd behavior and then further create bubbles. In the first part of our hypothesis, we find three types of papers to support information asymmetry which can lead to herd behavior, which are theoretical model, mathematical model and experiment. It is similar in the second part of our hypothesis, which is herd behavior that can create bubbles.