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IS MORE INFORMATION BETTER? THE EFFECT OF TRADERS’ IRRATIONAL BEHAVIOR ON AN ARTIFICIAL STOCK MARKET

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

Abstract

This paper presents a computer simulated artificial stock market to examine market rationality issues. We construct economic agents with different degrees of irrationality to participate in the stock market. The agents replicate the irrational behaviors described in the psychology and finance literatures and determine the outcome of the market. The main focus of this study is to examine the two contradicting (efficient market versus noise trading) finance hypotheses in the presence of rational and irrational traders. © 2000, Association for Information Systems. All rights reserved.
Original languageEnglish
Title of host publicationProceedings of the 21st International Conference on Information Systems, ICIS 2000
PublisherAssociation for Information Systems
Pages660-666
Publication statusPublished - 2000
Externally publishedYes
Event21st International Conference on Information Systems (ICIS 2000) - Brisbane, Australia
Duration: 10 Dec 200013 Dec 2000

Publication series

NameProceedings of the 21st International Conference on Information Systems, ICIS 2000

Conference

Conference21st International Conference on Information Systems (ICIS 2000)
PlaceAustralia
CityBrisbane
Period10/12/0013/12/00

Bibliographical note

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