Mutual Illusions and Financing New Technologies: Two-Sided Informational Cascades (revised version Aug 11, 2003)

Sanditov, Bulat, Cowan, Robin and Kool, Clemens (2002). Mutual Illusions and Financing New Technologies: Two-Sided Informational Cascades (revised version Aug 11, 2003). UNU-MERIT Research Memoranda. UNU-MERIT.

Document type:
Report
Collection:
UNU-MERIT Research memoranda

Metadata
Documents
Versions
Statistics
  • Attached Files (Some files may be inaccessible until you login with your UNU Collections credentials)
    Name Description MIMEType Size Downloads
    rm2002-006.pdf PDF application/pdf 478.50KB
  • Sub-type Working paper
    Author Sanditov, Bulat
    Cowan, Robin
    Kool, Clemens
    Title Mutual Illusions and Financing New Technologies: Two-Sided Informational Cascades (revised version Aug 11, 2003)
    Series Title UNU-MERIT Research Memoranda
    Volume/Issue No. 6
    Publication Date 2002
    Publisher UNU-MERIT
    Language eng
    Abstract A model in which agents on both sides of the market are subject to informational cascades is examined. In an uncertain environment with asymmetric information agents tend to be overoptimistic about the state of the world, a result that fits with empirical evidence on financing new technologies. This overoptimism based on mutual illusions makes the system vulnerable to two-sided bubbles, and may be one of the reasons behind 'dot com' crash.
    Copyright Year 2002
    Copyright type All rights reserved
  • Versions
    Version Filter Type
  • Citation counts
    Google Scholar Search Google Scholar
    Access Statistics: 662 Abstract Views, 164 File Downloads  -  Detailed Statistics
    Created: Fri, 13 Dec 2013, 12:42:50 JST