Tag Archives: hedge fund cluster

Does Mimicking behavior lead to market crashes?

In this model by Capital Fund Management (www.cfm.fr), high levels of copying behavior leads to bubbles and then crashes.  This is regardless of positive or negative news stories. Although only a mathematical model, this is interesting to me.  The key here is the definition of low vs high level of copying behavior.  If an inflection points exists for copying behavior, then […]