Institutionalization in Efficient Markets: The Case of Price Bubbles
General Finance
2016-09-16 v1 Social and Information Networks
Adaptation and Self-Organizing Systems
Abstract
We seek to deepen understanding of the micro-foundations of institutionalization while contributing to a sociological theory of markets by investigating the puzzle of price bubbles in financial markets. We find that such markets, despite textbook conditions of high efficiency -- perfect information, atomistic agents, no uncertainty -- quickly develop patterns consistent with institutionalization processes.
Keywords
Cite
@article{arxiv.1609.04629,
title = {Institutionalization in Efficient Markets: The Case of Price Bubbles},
author = {Sheen S. Levine and Edward J. Zajac},
journal= {arXiv preprint arXiv:1609.04629},
year = {2016}
}
Comments
Academy of Management Best Paper Proceedings (2008)