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cc-by-nc-nd (c) Perramon, 2013
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/34362

Media, investors and bubbles

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We analysed the specific case of how information in the financial press influences economic bubbles. We found considerable flaws in the information market due to several factors: demand, the predominance of what are termed “irrational investors” (herding), and supply, which has the problem that the sources of information are biased and feeds. A financial bubble is a deviation between real value of a financial asset and its persistent market price in time, which also has a speculative origin fed back by the illusion of the owners of these financial values, who will take benefits because of the future prices, which must be higher than the previous ones. The economical information in the media is submitting three problems. First of all, it is information generated by companies. In second place, the information circuit is fed back. A problem of informative independence becomes created, particularly serious in the case of the banks, which are very were as creditors. And in a third place, some informative biases are manifested for the companies of regulated sectors which are starring the economical information in the media.

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PERRAMON AYZA, Joaquim Maria. Media, investors and bubbles. [consulted: 15 of June of 2026]. Available at: https://hdl.handle.net/2445/34362

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