The nominal share price anchor: A theoretical model of social norms and behavioral martingales in stock markets
Published online on May 30, 2025
Abstract
Rationality and Society, Volume 38, Issue 1, Page 102-134, February 2026.
This paper investigates the nominal share price anchor, a phenomenon documented in the US stock market (1933–2007) where average nominal share prices exhibited remarkable stability. We develop a social norm formation model that explicitly incorporates the ...
This paper investigates the nominal share price anchor, a phenomenon documented in the US stock market (1933–2007) where average nominal share prices exhibited remarkable stability. We develop a social norm formation model that explicitly incorporates the ...