eva‎luating the existence of the required features of the externalization model in the Iranian stock market

9/22/2023 12:00:00 AM

This research has been done in order to understand the behavior of people present in the Iranian stock exchange with the aim of adapting the parameters of the extrapolation model and correcting it for the existing conditions in the Iranian economy. The asset bubble in the financial markets has been discussed by economists since the past. A bubble is a situation in which financial assets are traded between economic agents outside of their real value. The extrapolation and bubble model has tried to explain the bubble by using the concept of extrapolation. This model consists of the combination of two types of outsourced and fundamental traders. The sourcing trader always uses past price changes to shape his demand. In this research, the presence of foreign traders in the Iranian stock market was investigated. Also, the characteristics of these traders were investigated using a field study in Azar 1399. By comparing the prices obtained from the extrapolation formula and the average prices predicted for future prices, this research confirms all the characteristics of the extrapolation traders in the Iranian stock market.

اقتصاد رفتاري , مدل برونيابي , حباب

behavioral economics , bubble , extrapolation

Ali Damshenas

Ataalla Rafiei Atani