BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//RLASKEY//CALENDEROUS//EN
CALSCALE:GREGORIAN
METHOD:PUBLISH
BEGIN:VEVENT
DTSTAMP:20260914T212432Z
LAST-MODIFIED:20170907T183607Z
DTSTART:20170918T173000Z
DTEND:20170918T183000Z
UID:event1799@bu.edu
URL:http://physics.bu.edu/internal/events/show/1799
SUMMARY:Market Bubbles: Collective Behavior in the Financial Market
DESCRIPTION:Featuring Chon Kit Pun\n\nPart of the Preliminary Oral Exam.\n\
	nExamining Committee: William Klein\, Harvey Gould\, Kirill Korolev\, Chris
	topher Grant\, Alex Sushkov\n\nAbstract:\n\n\nFrom the stock bubbles in the
	 1920s\, which eventually led to the Great Depression in the 1930s\, to the
	 recent boom and bust of the real estate bubbles in 2007-2009\, market bubb
	les have been the main source of instability in the financial market. While
	 speculators and momentum traders are blamed to have driven the price away 
	from the reasonable level during the formation of a bubble\, value investor
	s like the fund managers may sometimes fail to correct the price and instea
	d join 'riding the bubble'\, which help growing the bubble further.\n\nIn t
	his talk I will present an agent-based model of how the collective behavior
	 of traders give rise to a bubble. In this model traders learn which assets
	 to invest by using the Experience Weighted Attraction (EWA) learning algor
	ithm\, which has its root in both behavioral psychology and game theory and
	 has seen applications in social science and economics. I will show that wh
	en traders tend to invest in the `winning' asset\, memory and liquidity pla
	y an important role in the formation\nof bubbles. The discussion of the res
	ult will be emphasized on the implication to the real market\, and on the c
	omparison with statistical physics.
LOCATION:SCI 328\, 590 Commonwealth Avenue\, 02215
STATUS:CONFIRMED
CLASS:PUBLIC
END:VEVENT
END:VCALENDAR