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Xianxin Duan

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When Do Narratives Move Prices? Portfolio Allocation and Narrative Diffusion in Financial Markets

ABSTRACT Why do widely discussed market narratives sometimes trigger large asset‐price movements while at other times have little effect? We develop a dynamic equilibrium model in which narratives diffuse through investor communication networks and affect prices through portfolio reallocation. Narratives influence equi...

Yong Ma, Xianxin Duan, Bochuan Dai · 0 citations

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