Title :
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
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;
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
DOI :
10.1109/ICMSE.2007.4422097
