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The Traditional Approach to Finance Kapitel lesen Erstes Kapitel lesen

2013 | OriginalPaper | Buchkapitel

7. Complexity Theory and Systemic Risk in the World’s Financial Markets

verfasst von : Jørgen Vitting Andersen, Andrzej Nowak

Erschienen in: An Introduction to Socio-Finance

Verlag: Springer Berlin Heidelberg

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Abstract

In this penultimate chapter of the book, we take a top view of the financial markets, looking now at the network of the world’s stock exchanges and suggesting that there is a sociological phenomenonSociology Price dynamics!slow@as social phenomenon behind the way price formation propagates across markets. However, the social process of price formation comes with a psychological twist,Psychology!change blindness since the claim will be that ‘change blindness’Change blindness could at times play an important part in such a process, with traders ignoring small price changes, but jumping into the market whenever a large price change occurs.

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Vorheriges Kapitel Social Framing Creating Bull Markets of the Past: Growth Theory of Financial Markets
Nächstes Kapitel Communication and the Stock Market
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Metadaten
Titel
Complexity Theory and Systemic Risk in the World’s Financial Markets
verfasst von
Jørgen Vitting Andersen
Andrzej Nowak
Copyright-Jahr
2013
Verlag
Springer Berlin Heidelberg
Buch
An Introduction to Socio-Finance

Print ISBN: 978-3-642-41943-0

Electronic ISBN: 978-3-642-41944-7

Copyright-Jahr: 2013

DOI
https://doi.org/10.1007/978-3-642-41944-7_7