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Bubbles and Fads in Asset Prices

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Author Info
Camerer, Colin
Abstract

The article considers the possibility that asset prices might deviate from intrinsic values based on market fundamentals. Three broad categories of theory are surveyed: (1) growing bubbles, (2) fads, and (3) information bubbles. "Sunspot" theories are also discussed. The paper covers both theory and evidence, and directions for future research are discussed. Copyright 1989 by Blackwell Publishers Ltd

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economic Surveys.

Volume (Year): 3 (1989)
Issue (Month): 1 ()
Pages: 3-41
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Handle: RePEc:bla:jecsur:v:3:y:1989:i:1:p:3-41

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804

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  3. Alexandra Lai, 2002. "Modelling Financial Instability: A Survey of the Literature," Working Papers 02-12, Bank of Canada. [Downloadable!]
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  8. Markus Noth & Martin Weber, 2003. "Information Aggregation with Random Ordering: Cascades and Overconfidence," Economic Journal, Royal Economic Society, vol. 113(484), pages 166-189, January. [Downloadable!] (restricted)
  9. Lucy F. Ackert & William C. Hunter, 2000. "An empirical examination of the price-dividend relation with dividend management," Working Paper Series WP-00-22, Federal Reserve Bank of Chicago. [Downloadable!]
  10. Francesco Feri & Miguel A. Melendez-Jimenez & Giovanni Ponti & Fernando Vega Redondo, 2008. "Error Cascades in Observational Learning: An Experiment on the Chinos Game," Economics Working Papers ECO2008/14, European University Institute. [Downloadable!]
  11. R. Glen Donaldson & Mark Kamstra, . "Forecasting Fundamental Asset Return Distributions," Computing in Economics and Finance 1997 176, Society for Computational Economics. [Downloadable!]
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