finance research letters

Based on the sensitivity of stocks to changes in winning probabilities observed before the election, we show how the stock market’s assessment of the unobserved post-election winning probabilities can be backed out from stock prices.

This paper investigates herding behavior in the crypto market. We consider the full, survivorship-bias free cross-section of cryptocurrencies, and document - against existing evidence - significant herding in this dataset. The effect is stronger, when using bitcoin as a ‘transfer currency’.