Bubbles and crashes

Abreu, D., & Brunnermeier, M. K. (2003). Bubbles and crashes. Econometrica, 71(1), 173-204.

Type

Journal article

Intellectual base

Primary research

Year

2003

Link

https://doi.org/10.1111/1468-0262.00393matched

Cited from

behavioral_economics, economics_finance

Cited by

2 citations across 2 artifacts.

Primes

• Information Cascade
  • The temporal dimension affects both cascade fragility and the feasibility of reversal mechanisms.
• Speculative Bubble
  • The greater-fool dynamic can be entirely rational at the individual level: a buyer who believes (correctly, for a while) that someone else will pay more is making a sound bet on the continuation of the inflow, as Abreu and Brunnermeier (2003) show in their model of rational arbitrageurs who ride a bubble because they cannot coordinate the timing of its collapse.

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Registry ID ref:7adb8572c910 · see in the full table