Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors
Much research has been devoted to what is often called herding behavior. This is the idea that investors trade just because others are trading. This is often cited as evidence of irrationality by finance behavorialists. (Is that a word? It should be!) Grinblatt, Keloharju, and Ikaheimo examine this type of behavior by looking at car purchases. No, really. … [ Read more ]
Content: Article | Authors: Mark Grinblatt, Matti Keloharju, Seppo Ikaheimo | Source: “Social Science Research Network (SSRN)” | Subjects: Finance, Industry Specific | Industry: Investing