TY - JOUR
T1 - Survey evidence on diffusion of interest and information among investors
AU - Shiller, 021Robert J.
AU - Pound, John
N1 - Funding Information:
*The institutional surveys reported here were carried out by Donald R. DeLuca, Director, Ofiice for Teaching and Research, the Roper Center, Yale University. This research is part of the Investor Behavior Project at the School of Management, Yale University. The authors are indebted to Robert Alder, Peter L. Bernstein, Jonathan E. Ingersoll, Jr., Thomas F. Juster, Robert Lovell, Burton G. Malkiel, Joel R. Mogy, Jeremy J. Siegel, Martin D. Sass, and John R. Tilton for helpful suggestions, and to anonymous respondents for filling out questionnaires. Louis Thomas provided research assistance. This research was supported by the National Science Foundation.
PY - 1989/8
Y1 - 1989/8
N2 - Questionnaire surveys of institutional and individual investors were undertaken to learn about patterns of communications. It was found that direct interpersonal communications are very important in investor decisions. Questions elicited what fraction of investors were unsystematic and allowed themselves to be influenced by word-of-mouth communications or other salient stimuli. Randomly sampled investors were studied as well as investors in stocks whose price had recently increased dramatically. Contagion or epidemic models of financial markets are proposed in which interest in individual stocks is spread by word of mouth. The survey evidence is interpreted as supporting such models.
AB - Questionnaire surveys of institutional and individual investors were undertaken to learn about patterns of communications. It was found that direct interpersonal communications are very important in investor decisions. Questions elicited what fraction of investors were unsystematic and allowed themselves to be influenced by word-of-mouth communications or other salient stimuli. Randomly sampled investors were studied as well as investors in stocks whose price had recently increased dramatically. Contagion or epidemic models of financial markets are proposed in which interest in individual stocks is spread by word of mouth. The survey evidence is interpreted as supporting such models.
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U2 - 10.1016/0167-2681(89)90076-0
DO - 10.1016/0167-2681(89)90076-0
M3 - Article
AN - SCOPUS:0002099196
SN - 0167-2681
VL - 12
SP - 47
EP - 66
JO - Journal of Economic Behavior and Organization
JF - Journal of Economic Behavior and Organization
IS - 1
ER -