scholarly journals Market Panics, Frenzies, and Informational Efficiency: Theory and Experiment

2020 ◽  
Vol 12 (3) ◽  
pp. 76-115
Author(s):  
Chad Kendall
Keyword(s):  
Informational Efficiency ◽  
Trading Behavior ◽  
Equilibrium Behavior ◽  
Efficiency Theory ◽  
Price Movements ◽  
Model Market ◽  
Theory And Experiment

In a market rush, the fear of future adverse price movements causes traders to trade before they become well informed, reducing the informational efficiency of the market. I derive theoretical conditions under which market rushes are equilibrium behavior and study how well these conditions organize trading behavior in a laboratory implementation of the model. Market rushes, including both panics and frenzies, occur more frequently when predicted by theory. However, subjects use commonly discussed, momentum-like strategies that lead to informational losses not predicted by theory, suggesting that these strategies may exacerbate both the occurrence and consequences of panics and frenzies. (JEL C91, D83, G14, G41)

Knowledge Capital – Influenced By Rationality Or Animal Spirits?

2014 ◽  
Vol 1 (1) ◽  
pp. 347-352 ◽  
Author(s):  
Camelia Oprean
Keyword(s):  
Efficient Market Hypothesis ◽  
Scientific Basis ◽  
Informational Efficiency ◽  
Critical Approach ◽  
Financial Decisions ◽  
Organization And Management ◽  
Current State ◽  
Human Decision ◽  
Efficiency Theory ◽  
The Individual

AbstractIt is already a well-accepted concept in expansion, the economy, organization and management based on knowledge. It is said that the owners of knowledge, respectively the individual, organization and the society, will hold the power in the future. Thus, the knowledge become the economic and personal basic resource and all the activities from the economic sphere are prevailingly concentrated on the treatment of information and producing of knowledge goods. However, it is still difficult to explain on a strict scientific basis why people behave non-rational when facing with money decisions. Classic finance foundation lays on strict rationality and optimization of financial decisions. We affirm that monetary and financial decisions are significantly influenced by psychological factors. Behavioural Finance adds to the equation the psychological and emotional facets of the human decision. This emerging discipline has challenged the Efficient Market Hypothesis, arguing that markets are not rational, but are driven by fear and greed instead. The paper proposes a critical analysis, based on consistency criteria, regarding the controversy current state of the informational efficiency theory of the capital market. In this sense, the critical approach is one that shows the weaknesses, the vulnerable aspects that characterize the classical form of EMH theory. Also, the paper highlights the most significant criticisms levelled against EMH by psychologists and behavioural economists.

Electrostatic optics and aberration correction in the 1940s and today

1992 ◽  
Vol 50 (1) ◽  
pp. 6-7
Author(s):  
Gertrude F. Rempfer
Keyword(s):  
Electron Microscope ◽  
Focal Point ◽  
Focal Length ◽  
High Vacuum ◽  
Electron Optics ◽  
Applied Physics ◽  
Electrostatic Lenses ◽  
Commercial Instrument ◽  
The University ◽  
Theory And Experiment

I became involved in electron optics in early 1945, when my husband Robert and I were hired by the Farrand Optical Company. My husband had a mathematics Ph.D.; my degree was in physics. My main responsibilities were connected with the development of an electrostatic electron microscope. Fortunately, my thesis research on thermionic and field emission, in the late 1930s under the direction of Professor Joseph E. Henderson at the University of Washington, provided a foundation for dealing with electron beams, high vacuum, and high voltage.At the Farrand Company my co-workers and I used an electron-optical bench to carry out an extensive series of tests on three-electrode electrostatic lenses, as a function of geometrical and voltage parameters. Our studies enabled us to select optimum designs for the lenses in the electron microscope. We early on discovered that, in general, electron lenses are not “thin” lenses, and that aberrations of focal point and aberrations of focal length are not the same. I found electron optics to be an intriguing blend of theory and experiment. A laboratory version of the electron microscope was built and tested, and a report was given at the December 1947 EMSA meeting. The micrograph in fig. 1 is one of several which were presented at the meeting. This micrograph also appeared on the cover of the January 1949 issue of Journal of Applied Physics. These were exciting times in electron microscopy; it seemed that almost everything that happened was new. Our opportunities to publish were limited to patents because Mr. Farrand envisaged a commercial instrument. Regrettably, a commercial version of our laboratory microscope was not produced.

Experimental study of the out-of-equilibrium behavior of the two-way shape memory effect

2003 ◽  
Vol 112 ◽  
pp. 765-768 ◽  
Author(s):  
Y. Bellouard ◽  
R. Clavel ◽  
R. Gotthardt ◽  
J. van Humbeeck
Keyword(s):  
Experimental Study ◽  
Shape Memory ◽  
Shape Memory Effect ◽  
Memory Effect ◽  
Equilibrium Behavior

Electronic properties of TTF-TCNQ : a connection between theory and experiment

1978 ◽  
Vol 39 (12) ◽  
pp. 1355-1363 ◽  
Author(s):  
L.G. Caron ◽  
M. Miljak ◽  
D. Jerome
Keyword(s):  
Electronic Properties ◽  
Theory And Experiment

Multineuronal structures: theory and experiment.

1986 ◽  
Vol 150 (10) ◽  
pp. 321
Author(s):  
V.L. Dunin-Barkovskii
Keyword(s):  
Theory And Experiment
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