Herd behavior in the container ship market
The basic hypothesis of Traditional finance theory who relevant to the existence of rational investors & efficient markets has challenged in many cases. The rational ability of participants in a market is one of the basics hypotheses of Efficient Market Theory. (Fama 1970) Recent empirical stu...
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| Γλώσσα: | English |
| Δημοσίευση: |
2020
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| Διαθέσιμο Online: | http://hdl.handle.net/11610/20961 |
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| Περίληψη: | The basic hypothesis of Traditional finance theory who relevant to the existence of rational investors & efficient markets has challenged in many cases. The rational ability of participants in a market is one of the basics hypotheses of Efficient Market Theory. (Fama 1970)
Recent empirical studies have demonstrated that investors (ownerships) behave systematically not rationally. (D. Ariely2008) The not rational behavior of ship-owners was resulted of Asymmetric information and noise. Such as has declared the Professor Shiller in his lectures: ‘’Things are not perfect, the world is not perfect and in the world there are real people’’. (Shiller 2003)
The emergence of the crisis of 2008 with the collapse of the Lehman brothers and the destabilization of the markets, (in our case Container-ship market), highlighted the importance of Behavior in shaping the economic, social & financial environment.
A crucial step to understand the Herd Behavior is the Prospect Theory (Kahneman & Tversky’s 1979). An investor always looks the prospects which possibly presented. When investors (with the help of favorable economic environment), see prospects for a market (in our case Container-ship) invest. However, in many cases the investors exceed the level of optimism & easily arrive at the point ‘’Greed’’. At this point ‘’Greed’’ the investors taking the biggest investment risk. |
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