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Effects of consistency and accurate predictions of stock prices on herding in a simulated financial market.

Andersson, Maria, 1977 (author)
Gothenburg University,Göteborgs universitet,Psykologiska institutionen,Department of Psychology
Hedesström, Martin, 1969 (author)
Gothenburg University,Göteborgs universitet,Psykologiska institutionen,Department of Psychology
Gärling, Tommy, 1941 (author)
Gothenburg University,Göteborgs universitet,Psykologiska institutionen,Department of Psychology
 (creator_code:org_t)
2008
2008
English.
In: Poster presented at the 29th annual conference of the Society for Judgment and Decision Making, Chicago, USA..
  • Conference paper (other academic/artistic)
Abstract Subject headings
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  • In a simulated financial market setting we investigate the degree to which participants in judgment tasks were influenced by other (fictitious) participants’ judgments. Two experiments examine the influence from random vs. accurate majorities (Experiment 1), random vs. accurate minorities (Experiment 2), and whether the influence was affected by instructing participants to focus on the accuracy in performance (Experiments 1 and 2). Results show that participants followed majorities irrespectively of their level of accuracy, whereas accurate minorities were more influential than random minorities. The focus instruction decreased majority influence, regardless of accuracy, but increased the influence from accurate minorities.

Subject headings

SAMHÄLLSVETENSKAP  -- Psykologi (hsv//swe)
SOCIAL SCIENCES  -- Psychology (hsv//eng)

Keyword

Herding
financial markets
accuracy
social influence processes

Publication and Content Type

vet (subject category)
kon (subject category)

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University of Gothenburg

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