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The behavioral origins of the stylized facts of financial returns have been addressed in a growing body of agent-based models of financial markets. While the traditional efficient market viewpoint explains all statistical properties of returns by similar features of the news arrival process, the more recent behav-ioral finance models explain them as(More)
We study some properties of eigenvalue spectra of financial correlation matrices. In particular, we investigate the nature of the large eigenvalue bulks which are observed empirically, and which have often been regarded as a consequence of the supposedly large amount of noise contained in financial data. We challenge this common knowledge by acting on the(More)
Power law behavior has been recognized to be a pervasive feature of many phenomena in natural and social sciences. While immense research efforts have been devoted to the analysis of behavioral mechanisms responsible for the ubiquity of power-law scaling, the strong theoretical foundation of power laws as a very general type of limiting behavior of large(More)
The present paper expands on recent attempts at estimating the parameters of simple interacting-agent models of financial markets [S. pp. 241–254]. Here we provide additional evidence by (i) investigating a large sample of individual stocks from the Tokyo Stock Exchange, and (ii) comparing results from the baseline noise trader/fundamentalist model of [S.(More)
We consider the current bipartite graph of German corporate boards and identify a small core of directors who are highly central in the entire network while being densely connected among themselves. To identify the core, we compare the actual number of board memberships to a random benchmark, focusing on deviations from the benchmark that span several(More)
The main advantages of a laboratory financial market with respect to field data are: (i) it allows us a perfect monitoring of the available information to each subject at any moment in time, and (ii) it gives us the possibility of recording subjects' trading activity in the market. In our experimental design the information distribution is endogenous, since(More)
We perform a rather careful spectral analysis of the correlation structures observed in real and financial returns for a large pool of long-lived US corporations, and find that financial returns are characterized by strong collective fluctuations that are absent from real returns. Once the excessive comovement is subtracted from individual financial time(More)
The origin of the universality of the stylized facts in financial markets is still a puzzle. In this paper we show analytically that a possible explanation lies in the strategies, which are commonly used by traders in every financial market, namely technical and fundamental analysis. We show that the tail index of the unconditional distribution of returns(More)
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