contagion

Wishful betting can contaminate financial markets

UT - Office of Public Affairs  Wed, 03/11/2009 - 1:17pm

Wishful bettors, those who make overly optimistic investments, will ultimately harm themselves financially, but they can harm entire markets as well, new research shows.

In the paper, "Contagion of Wishful Thinking in Markets," researchers from The University of Texas at Austin and Cornell University demonstrate how wishful betting can contaminate beliefs throughout markets, as other market [...]