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Financial Market Contagion

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The New Palgrave Dictionary of Economics

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Abstract

The power of the metaphor of contagion – that beliefs, actions, and strategies spread among economic agents like pathogens among biological organisms – causes it to recur in disparate areas of economics. This article focuses on four applications of contagion to economics: social influence or memoryless learning; Bayesian social learning; strategy choice in coordination games; and the spread of crises in international financial markets.

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Authors and Affiliations

  1. http://link.springer.com/referencework/10.1057/978-1-349-95189-5

    Morgan Kelly

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  1. Morgan Kelly
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Kelly, M. (2018). Financial Market Contagion. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1959

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