Journal of Financial Risk Management

Volume 2, Issue 4 (December 2013)

ISSN Print: 2167-9533   ISSN Online: 2167-9541

Google-based Impact Factor: 0.61  Citations  

The Herd Behavior of Risk-Averse Investor Based on Information Cost

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DOI: 10.4236/jfrm.2013.24015    5,027 Downloads   9,039 Views  Citations


In this paper, the traditional model of herd behavior was improved and extended. The herd behavior of risk-averse investor based on information cost was studied in the financial market. By refining the concept of Bayes equilibrium and the analysis of the behavior of investors, it was discovered that the herd behavior of the second risk-averse investor did not produce until the first risk-averse investors chose to buy information.

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Deng, G. (2013). The Herd Behavior of Risk-Averse Investor Based on Information Cost. Journal of Financial Risk Management, 2, 87-91. doi: 10.4236/jfrm.2013.24015.

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