The presence of the news to be false, it may lead to distortions of the market or the ones that are defined as “shaking the chaotic endogjene”, d.m.th., the oscillation of the violent and unpredictable the awards, which are determined by the changes in the current state of the economy, but by the attitude “mechanics” of the agents that end up being neglected, the analysis was correct, and “improvise” the trade.
This is one of the results of a study of the Paolo Pellizzari, an associate professor of the Department of Economics, University Ca’ Foscari of Venice, which explains it, and plots the impact of the news to be fake, the performance of the market. The work, published in the Journal of Economics and Statistics, it is written, in cooperation with the Frank Westerhoff, and the Time Mignot from the University of Bamberg (Germany).
In theory, prices should be “to represent the” synthesis of all the information held by the operator of the market, but it is clear that, in recent times, the amount of information potentially available has increased dramatically, and the reliability is low. The “flood of information” and the presence of the posts, stories, articles, and posts on Twitter, twisted, biased, or just plain fake, get a lot of people neglect it entirely, information verification, by distinguishing the truth from the false.
In a context such as this one, occurring in the first three things: the prices down to “detach” from the fundamentals of the economy and to become less important (for example, a high price does not correspond to the quality of the high, and vice-versa); there is a decrease in the overall price of the asset and the economic and financial. because it's a kind of a “cluster information” wraps up the true value of the securities. Finally, some agents may be limited in the use of strategies, the simplest of purchases, with no long-term planning, and allowing him, for example, are influenced by trends, incidental, and “mirazhe” and others.
Paradoxically, the latest news and exaggerated to be good or biased to be conducive to increasing the rumors about the title, and ends up producing some confusion.
And then there is the situation in which the instability is caused, it becomes permanent, and the price, of which the first was established, it begins to fluctuate, even in the absence of news. The agents had been “infected” by the question, and the trauma does not go even after the virus is not spreading anymore. The allocation of the agents for further information on the credibility of what they read increases the load of information to digest and even more and more, and so perverse, it may even be worse the things in the absence of planning, the correct the interference.
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