Game On: Social Networks and Markets

Research output: Contribution to conferencePaperResearchpeer-review


I present closed-form solutions for prices, portfolios, and beliefs in a model where four types of investors trade assets over time: naive investors who learn via a social network, “fanatics” possibly spreading fake news, rational short-term investors, and
long-term investors. I show that fanatic and rational views dominate over time due to echo-chamber effects, and their relative importance depends on their following by influencers. Securities markets exhibit social network spillovers, large effects of influencers and thought leaders, bubbles, bursts of high volume, price momentum, fundamental momentum, and reversal. The model sheds new light on the GameStop event, historical bubbles, and asset markets more generally
Original languageEnglish
Publication date2022
Number of pages52
Publication statusPublished - 2022
EventASSA 2022 Virtual Annual Meeting - , WWW
Duration: 7 Jan 20229 Jan 2022


ConferenceASSA 2022 Virtual Annual Meeting
Internet address


  • Networks
  • Influencers
  • Social media
  • Bubbles
  • Asset prices
  • Belief formation
  • Momentum
  • Reversal

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