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The effect of rating agencies on herd behaviour

  • Giovanni Ferri

    ()

  • Andrea Morone

    ()

This paper purports to provide some evidence on the effect of rating agencies in financial markets. By means of a laboratory experiment, we investigate the effect and interaction between private and public information. We reached two conclusions: (1) indeed, the rating agency can speed up price convergence, (2) but not always to the fundamental price. Copyright Springer-Verlag Berlin Heidelberg 2014

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File URL: http://hdl.handle.net/10.1007/s11403-013-0114-0
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Article provided by Springer & Society for Economic Science with Heterogeneous Interacting Agents in its journal Journal of Economic Interaction and Coordination.

Volume (Year): 9 (2014)
Issue (Month): 1 (April)
Pages: 107-127

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Handle: RePEc:spr:jeicoo:v:9:y:2014:i:1:p:107-127
DOI: 10.1007/s11403-013-0114-0
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