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dc.contributor.authorPan, Wei
dc.contributor.authorAltshuler, Yaniv
dc.contributor.authorPentland, Alex Paul
dc.date.accessioned2013-09-16T20:10:18Z
dc.date.available2013-09-16T20:10:18Z
dc.date.issued2012-09
dc.identifier.isbn978-1-4673-5638-1
dc.identifier.isbn978-0-7695-4848-7
dc.identifier.urihttp://hdl.handle.net/1721.1/80764
dc.description.abstractIn this paper, we study roles of social mechanisms in a financial system. Our data come from a novel on-line foreign exchange trading brokerage for individual investors, which also allows investors to form social network ties between each other and copy others' trades. From the dataset, we analyze the dynamics of this connected social influence systems in decision making processes. We discover that generally social trades outperform individual trades, but the social reputation of the top traders is not completely determined by their performance due to social feedback even when users are betting their own money. We also find that social influence plays a significant role in users' trades, especially decisions during periods of uncertainty. We report evidences suggesting that the dynamics of social influence contribute to market overreaction.en_US
dc.language.isoen_US
dc.publisherInstitute of Electrical and Electronics Engineers (IEEE)en_US
dc.relation.isversionofhttp://dx.doi.org/10.1109/SocialCom-PASSAT.2012.133en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alike 3.0en_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/3.0/en_US
dc.sourceMIT Web Domainen_US
dc.titleDecoding Social Influence and the Wisdom of the Crowd in Financial Trading Networken_US
dc.typeArticleen_US
dc.identifier.citationPan, Wei, Yaniv Altshuler, and Alex (Sandy) Pentland. “Decoding Social Influence and the Wisdom of the Crowd in Financial Trading Network.” In 2012 International Conference on Privacy, Security, Risk and Trust and 2012 International Confernece on Social Computing, 203-209. Institute of Electrical and Electronics Engineers, 2012.en_US
dc.contributor.departmentMassachusetts Institute of Technology. Media Laboratoryen_US
dc.contributor.departmentProgram in Media Arts and Sciences (Massachusetts Institute of Technology)en_US
dc.contributor.mitauthorPan, Weien_US
dc.contributor.mitauthorAltshuler, Yaniven_US
dc.contributor.mitauthorPentland, Alex Paulen_US
dc.relation.journal2012 International Conference on Privacy, Security, Risk and Trust and 2012 International Confernece on Social Computingen_US
dc.eprint.versionAuthor's final manuscripten_US
dc.type.urihttp://purl.org/eprint/type/ConferencePaperen_US
eprint.statushttp://purl.org/eprint/status/NonPeerRevieweden_US
dspace.orderedauthorsPan, Wei; Altshuler, Yaniv; Pentland, Alex (Sandy)en_US
dc.identifier.orcidhttps://orcid.org/0000-0002-8053-9983
dc.identifier.orcidhttps://orcid.org/0000-0002-3410-9587
mit.licenseOPEN_ACCESS_POLICYen_US


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