The Feedback Model and Formation of Bubbles

Jinwen Kang

doi:10.54097/hbem.v3i.4656

Authors

Jinwen Kang

DOI:

https://doi.org/10.54097/hbem.v3i.4656

Keywords:

Feedback Model; Bubbles; Inefficient Market; Information Asymmetry; Market Sentiment.

Abstract

This paper aims to summarize Shiller's point of view regarding the Feedback Model and how humans react to the price bubble. It introduced the formation process and measurement method of foam of bubbles in detail. Many phycologists have indicated several principles and perspectives regarding human behaviors in support of the formation process. Moreover, this paper indicated several circumstances and measurements of bubbles, along with historical evidence.

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