TY  - RPRT
A1  - König, Frederik
T1  - Does social interaction destablise financial markets?
N2  - With this paper, I propose a simple asset pricing model that accounts for the influence from social interaction. Investors are assumed to make up their mind about an asset’s price based on a forecasting strategy and its past profitability as well as on the contemporaneous expectations of other market participants. Empirically analysing stocks of the DAX30 index, I provide evidence that social interaction rather destabilises financial markets. Based on my results, I state that at least, it does not have a stabilising effect.
KW  - Asset Pricing
KW  - Social Interaction
KW  - (De-)stabilisation
Y1  - 2012
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/30072
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-300720
UR  - http://ssrn.com/abstract=2133960
IS  - SSRN-id2133960
SP  - 1
EP  - 30
PB  - Social Science Electronic Publ.
CY  - [S.l.]
ER  -