A Study of Herd Behavior in Chinese Stock Market Based on a Simulation of Stock Market

Cheng-Hui PANG, Zhen-Yi ZHENG


Behavioral finance theory as a refutation of the efficient market, complete the study of financial markets. Herd behavior is an important part of behavioral finance theory. This article combines with the characteristics of Chinese stock market to build a simulation of stock market to research the herd effect in stock market. Using this simulation to observe the price changes about stock market to study how the herd behaviors impact on the stock market.


Behavioral finance; Herd behavior; Simulation


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