@inbook{4a7d46fcc8dc4653b334b74b06fba3cb,
title = "Herding behavior of financial analysts: a model of self-organized criticality",
abstract = "We investigate a simple model of investment recommendations issued by financial analysts in different industries. Financial analysts are influenced by the recommendations of some of their colleagues in the same industry as well as their own recommendations in certain other industries. Describing the relations with other financial analysts and among industries as a graph, we derive the complex dynamics of investment recommendations as relations change over time according to a simple rule, resulting in self-organized criticality. We show that financial analysts are more likely to be optimistic about industries that are unrelated to other industries than about industries that are related to others.",
author = "Andreas Krause",
year = "2004",
doi = "10.1007/978-3-642-17045-4_15",
language = "English",
isbn = "9783540404972",
series = "Lecture Notes in Economics and Mathematical Systems",
publisher = "Springer",
number = "Part IV",
pages = "257--267",
editor = "M. Galegatti and A. Kirman and M. Marsili",
booktitle = "The Complex Dynamics of Economic Interaction",
}