SpringerBriefs in Finance

Asset Price Response to New Information

The Effects of Conservatism Bias and Representativeness Heuristic

Authors: Luo, Guo Ying

  • First comprehensive text to discuss trading mechanisms from a behavioral finance perspective
  • Presents state-of-the-art research in market behavior and efficiency
  • Author is regarded as a leading expert in market microstructure theory and market selection
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Buy this book

eBook $39.99
price for USA (gross)
  • ISBN 978-1-4614-9369-3
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $54.99
price for USA
  • ISBN 978-1-4614-9368-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

Asset Price Response to New Information examines the effect of two types of psychological biases (namely, conservatism bias and representativeness heuristic) on the asset price reaction to new information. The author constructs various models of a competitive securities market or a security market allowing for strategic interaction among traders to prove rigorously that either conservatism or representativeness is capable of generating both asset price overreaction and underreaction to new information. The results shed some new insights on the phenomena of the asset price overreaction and underreaction to new information. In the literature, very little has been published in this area of behavioral finance. This volume will appeal to graduate-level students and researchers in finance, behavioral finance, and financial engineering.

Reviews

From the book reviews:

“The ideal readers of this book would be PhD students and professors in finance and economics, especially those who have a special interest in behavioral economics/finance. … this book provides a very nice theoretical contribution on how a simple behavioral bias such as conservatism or representativeness could result in both underreaction and overreaction simultaneously in a stylized two-period setting.” (Jianfeng Yu, Journal of Economic Literature, Vol. LII (4), December, 2014)


Table of contents (7 chapters)

  • Introduction

    Luo, Guo Ying

    Pages 1-4

  • Conservatism Bias and Asset Price Overreaction or Underreaction to New Information in a Competitive Securities Market

    Luo, Guo Ying

    Pages 5-14

  • Conservatism Bias and Asset Price Overreaction or Underreaction to New Information in the Presence of Strategic Interaction

    Luo, Guo Ying

    Pages 15-25

  • Representativeness Heuristic and Asset Price Overreaction or Underreaction to New Information in a Competitive Securities Market

    Luo, Guo Ying

    Pages 27-39

  • Representativeness Heuristic and Asset Price Overreaction or Underreaction to new Information in the Presence of Strategic Interaction

    Luo, Guo Ying

    Pages 41-51

Buy this book

eBook $39.99
price for USA (gross)
  • ISBN 978-1-4614-9369-3
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $54.99
price for USA
  • ISBN 978-1-4614-9368-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Asset Price Response to New Information
Book Subtitle
The Effects of Conservatism Bias and Representativeness Heuristic
Authors
Series Title
SpringerBriefs in Finance
Copyright
2014
Publisher
Springer-Verlag New York
Copyright Holder
The Author(s)
eBook ISBN
978-1-4614-9369-3
DOI
10.1007/978-1-4614-9369-3
Softcover ISBN
978-1-4614-9368-6
Series ISSN
2193-1720
Edition Number
1
Number of Pages
VII, 70
Topics