Conformism, Public News and Market Efficiency

Abstract

We study the implications of conformism among analysts in a CARA Gaussian model of the market for a risky asset, where a trader’s information is a message sent by an analyst. Conformism increases the weight of the public information in the messages, decreasing their informativeness. More precise public information does not always result in more precise… (More)

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Cite this paper

@inproceedings{Desgranges2008ConformismPN, title={Conformism, Public News and Market Efficiency}, author={Gabriel Desgranges and C{\'e}line Rochon}, year={2008} }