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Communication and the Stock Market

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Abstract

Throughout this book we have described how interaction between market participants can occur through the price, with choices by market participants that depend on the price trajectories created by other traders. In the last chapter, we also discussed how price formation results from the social dynamics between large groups of individuals, where one financial market uses the outcome of other financial markets in order to decide how to price an asset properly.

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Authors and Affiliations

  1. CNRS, Centre d’Economie de la Sorbonne, University of Paris 1, Paris, France

    Jørgen Vitting Andersen

  2. Faculty of Psychology, University of Warsaw, Warsaw, Poland

    Andrzej Nowak

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  1. Jørgen Vitting Andersen
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Andersen, J.V., Nowak, A. (2013). Communication and the Stock Market. In: An Introduction to Socio-Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-41944-7_8

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