title: Short and long term investor synchronization caused by decoupling.
abstract: The dynamics of collective decision making is not yet well understood. Its practical relevance however can be of utmost importance, as experienced by people who lost their fortunes in turbulent moments of financial markets. In this paper we show how spontaneous collective "moods" or "biases" emerge dynamically among human participants playing a trading game in a simple model of the stock market. Applying theory and computer simulations to the experimental data generated by humans, we are able to predict the onset of such moments before they actually happen.
authors.affiliation: The Robert B. Zajonc Institute for Social Studies, University of Warsaw, Warsaw, Poland. magda.roszczynska@gmail.com
authors.forename: Magda
authors.initials: M
authors.lastname: Roszczynska-Kurasinska
authors.forename: Andrzej
authors.initials: A
authors.lastname: Nowak
authors.forename: Daniel
authors.initials: D
authors.lastname: Kamieniarz
authors.forename: Sorin
authors.initials: S
authors.lastname: Solomon
authors.forename: Jørgen Vitting
authors.initials: JV
authors.lastname: Andersen
mesh_terms: D000328:Adult; D000339:Affect; D003198:Computer Simulation; D003657:Decision Making; D005716:Game Theory; D005717:Games, Experimental; D006801:Humans; D007449:Investments / Q000191:economics; D008962:Models, Theoretical