01776cas a2200253 a 4500 AALejournalIMF005124 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869996 1018-5941 BD-DhAAL BD-DhAAL Cipriani, Marco. Herd Behavior in Financial Markets : An Experiment with Financial Market Professionals / Marco Cipriani, Antonio Guarino. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study herd behavior in a laboratory financial market with financial market professionals. We compare two treatments, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty makes herding possible. In the first treatment, subjects herd seldom, in accordance with both the theory and previous experimental evidence on student subjects. A proportion of subjects, however, engage in contrarianism, something not accounted for by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as theory suggests; moreover, contrarianism disappears altogether. Mode of access: Internet Guarino, Antonio. IMF Working Papers; Working Paper ; No. 2008/141 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/141/001.2008.issue-141-en.xml IMF e-Library