Investor Sentiments
We consider a general class of games that have been used to model many economic problems where players' sentiments are believed to play an important role. Dropping the common prior assumption, we identify the relevant notion of sentiments for strategic behavior in these games. This notion is ti...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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American Economic Association
2010
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| Online Access: | http://hdl.handle.net/1721.1/51888 https://orcid.org/0000-0002-7637-7117 |
| _version_ | 1826216396207423488 |
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| author | Izmalkov, Sergei Yildiz, Muhamet |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Izmalkov, Sergei Yildiz, Muhamet |
| author_sort | Izmalkov, Sergei |
| collection | MIT |
| description | We consider a general class of games that have been used to model many economic problems where players' sentiments are believed to play an important role. Dropping the common prior assumption, we identify the relevant notion of sentiments for strategic behavior in these games. This notion is tied to how likely a player thinks that some other player has a more optimistic outlook than himself when they obtain their private information. Under this notion, we show that sentiments have a profound effect on strategic outcomes -- even with vanishing uncertainty. |
| first_indexed | 2024-09-23T16:46:58Z |
| format | Article |
| id | mit-1721.1/51888 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T16:46:58Z |
| publishDate | 2010 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | mit-1721.1/518882022-09-29T21:26:37Z Investor Sentiments Izmalkov, Sergei Yildiz, Muhamet Massachusetts Institute of Technology. Department of Economics Yildiz, Muhamet Yildiz, Muhamet We consider a general class of games that have been used to model many economic problems where players' sentiments are believed to play an important role. Dropping the common prior assumption, we identify the relevant notion of sentiments for strategic behavior in these games. This notion is tied to how likely a player thinks that some other player has a more optimistic outlook than himself when they obtain their private information. Under this notion, we show that sentiments have a profound effect on strategic outcomes -- even with vanishing uncertainty. 2010-03-02T18:27:53Z 2010-03-02T18:27:53Z 2010-02 2008-12 Article http://purl.org/eprint/type/SubmittedJournalArticle 1945-7707 http://hdl.handle.net/1721.1/51888 Izmalkov, Sergei, and Muhamet Yildiz. 2010. "Investor Sentiments." American Economic Journal: Microeconomics, 2(1): 21–38. DOI:10.1257/mic.2.1.21 https://orcid.org/0000-0002-7637-7117 en_US http://dx.doi.org/10.1257/mic.2.1.21 American Economic Journal: Microeconomics Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association author/dept web page |
| spellingShingle | Izmalkov, Sergei Yildiz, Muhamet Investor Sentiments |
| title | Investor Sentiments |
| title_full | Investor Sentiments |
| title_fullStr | Investor Sentiments |
| title_full_unstemmed | Investor Sentiments |
| title_short | Investor Sentiments |
| title_sort | investor sentiments |
| url | http://hdl.handle.net/1721.1/51888 https://orcid.org/0000-0002-7637-7117 |
| work_keys_str_mv | AT izmalkovsergei investorsentiments AT yildizmuhamet investorsentiments |