6 papers
Mechanism Design for Investment Regulation under Herding
Huisheng Wang, H. Vicky Zhao
Herding, where investors imitate others' decisions rather than relying on their own analysis, is a prevalent phenomenon in financial markets. Excessive herding distorts rational de…
Analyzing the Crowding-Out Effect of Investment Herding on Consumption: An Optimal Control Theory Approach
Huisheng Wang, H. Vicky Zhao
Investment herding, a phenomenon where households mimic the decisions of others rather than relying on their own analysis, has significant effects on financial markets and househol…
InvestAlign: Overcoming Data Scarcity in Aligning Large Language Models with Investor Decision-Making Processes under Herd Behavior
Huisheng Wang, Zhuoshi Pan, Hangjing Zhang +3
Aligning Large Language Models (LLMs) with investor decision-making processes under herd behavior is a critical challenge in behavioral finance, which grapples with a fundamental l…
Optimal Investment under Mutual Strategy Influence among Agents
Huisheng Wang, H. Vicky Zhao
In financial markets, agents often mutually influence each other's investment strategies and adjust their strategies to align with others. However, there is limited quantitative st…
Optimal Investment under the Influence of Decision-changing Imitation
Huisheng Wang, H. Vicky Zhao
Decision-changing imitation is a prevalent phenomenon in financial markets, where investors imitate others' decision-changing rates when making their own investment decisions. In t…
Optimal Investment with Herd Behaviour Using Rational Decision Decomposition
Huisheng Wang, H. Vicky Zhao
In this paper, we study the optimal investment problem considering the herd behaviour between two agents, including one leading expert and one following agent whose decisions are i…