2007 | OriginalPaper | Chapter
Analyzing the Influence of Overconfident Investors on Financial Markets Through Agent-Based Model
Authors : Hiroshi Takahashi, Takao Terano
Published in: Intelligent Data Engineering and Automated Learning - IDEAL 2007
Publisher: Springer Berlin Heidelberg
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In this research, we employ Agent-Based Model to analyze how asset prices are affected by investors’ Behavior. This analysis places focus on the influence of overconfident investors on financial market. As a result of intensive analysis, we find that overconfident investors are generated in a bottom-up fashion in the market. Furthermore, it has also been found that overconfident investors have the ability to contribute to market efficiency.