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Financial Fragility and Scaling Distributions in the Laboratory

  • Conference paper
The Complex Networks of Economic Interactions

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 567))

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Summary

We present results from human and computer-based experiments aimed at exploring the role of rationality and financial markets in explaining the emergence of some well-known stylized facts regarding industrial and aggregate dynamics. We find that the information conveyed by financial markets helps agents adopt more rational decision processes. Rationality, in turn, is necessary to observe smooth aggregate behaviors.

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Author information

Authors and Affiliations

  1. DMCS and CEEL, University of Trento, Italy

    Giovanna Devetag

  2. DE and CEEL, University of Trento, Italy

    Edoardo Gaffeo

  3. DEA and SIEC, Politechnic University of Marche, Ancona, Italy

    Mauro Gallegati

  4. DMQTE University of Chieti-Pescara, Italy

    Gianfranco Giulioni

  5. SIEC, Politechnic University of Marche, Ancona, Italy

    Edoardo Gaffeo & Gianfranco Giulioni

Authors
  1. Giovanna Devetag
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  2. Edoardo Gaffeo
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  3. Mauro Gallegati
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  4. Gianfranco Giulioni
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Editor information

Editors and Affiliations

  1. Department of Computer Science, National Defense Academy, 1-10-20, Hashirimizu, Yokosuka, 239-8686, Japan

    Akira Namatame

  2. Division of Social Sciences, International Christian University (ICU), Osawa, Mitaka, Tokyo, 181-8585, Japan

    Taisei Kaizouji

  3. Department of Commerce, Chuo University, 3-11, Tama, Tokyo, 180-8585, Japan

    Yuuji Aruka

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© 2006 Springer-Verlag Berlin Heidelberg

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Devetag, G., Gaffeo, E., Gallegati, M., Giulioni, G. (2006). Financial Fragility and Scaling Distributions in the Laboratory. In: Namatame, A., Kaizouji, T., Aruka, Y. (eds) The Complex Networks of Economic Interactions. Lecture Notes in Economics and Mathematical Systems, vol 567. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-28727-2_4

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