A Study on Positive Feedback Activity in Financial Market Based on Delayed Information

Author

Lei, WANG ; Shi, AN ; He, HUANG

Author_Institution

Harbin Inst. of Technol., Harbin

fYear

2007

fDate

20-22 Aug. 2007

Firstpage

1769

Lastpage

1774

Abstract

Positive feedback trade is a kind of speculation during short term in financial market. This activity will cause the violent fluctuation for a given asset price, and make great influence to the stabilization of the financial market. So, it must be strong significance to research on the positive feedback trade and related controllable measures. First, we classified the former works, then the price reaction model under the influence of noise traders is established by considering the influence which the investment cost and information arrival rate make to the arbitrage and asset price. We analyze the reasons and conditions why positive feedback traders are born from quantitative analysis. At last, we give related advices to the control of positive feedback traders´ behaviors.

Keywords

financial management; investment; pricing; financial market; investment cost; positive feedback activity; quantitative analysis; violent fluctuation; Conference management; Costs; Delay; Engineering management; Feedback; Financial management; Fluctuations; Information analysis; Investments; Technology management; information arrival rate; investment cost; positive feedback trade; price reaction model;

fLanguage

English

Publisher

ieee

Conference_Titel

Management Science and Engineering, 2007. ICMSE 2007. International Conference on

Conference_Location

Harbin

Print_ISBN

978-7-88358-080-5

Electronic_ISBN

978-7-88358-080-5

Type

conf

DOI

10.1109/ICMSE.2007.4422097

Filename

4422097