Abstract
It is shown that market crashes and bubbles can arise without external shocks. Sudden changes in behavior coming after a long period of stationarity may be the result of endogenous information processing. Except for the daily observation of the market, there is no new information, no communication, and no coordination among the participants.
| Original language | English |
|---|---|
| Pages (from-to) | 1-8 |
| Number of pages | 8 |
| Journal | Journal of Business |
| Volume | 77 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 2004 |