Stock Prices and Social Dynamics
CFDP Revision Date
The empirical evidence that is widely interpreted as supporting the eﬀicient markets theory in ﬁnance actually does not rule out the possibility that changing fashions or fads among investors have an important influence on prices in ﬁnancial markets. A model of the impact of such fashions on prices is proposed and used in an exploratory data analysis of the aggregate United States Stock Market in the 20th century.
Shiller, Robert J., "Stock Prices and Social Dynamics" (1984). Cowles Foundation Discussion Papers. 958.