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Financial market contagion

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  • Morgan Kelly

Abstract

The power of the metaphor of contagion—that beliefs, actions, and strategies spread among economic agents like pathogens among biological organisms— causes it to recur in disparate areas of economics. This article focusses on four applications of contagion to economics: social influence or memoryless learning; Bayesian social learning; strategy choice in coordination games; and the spread of crises in international financial markets.

Suggested Citation

  • Morgan Kelly, 2008. "Financial market contagion," Open Access publications 10197/524, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:oapubs:10197/524
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    File URL: http://hdl.handle.net/10197/524
    File Function: Open Access version, 2008
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    References listed on IDEAS

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    Cited by:

    1. Keuschnigg, Marc, 2015. "Product Success in Cultural Markets: The Mediating Role of Familiarity, Peers, and Experts," MPRA Paper 63444, University Library of Munich, Germany.

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    Keywords

    Economics--Sociological aspects;

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