Price clustering and natural resistance points in the Dutch stock market: A natural experiment

European Economic Review

Volumn 50, Issue 8, 2006, Pages 1937-1950

  Sonnemans, Joep ^a  

^a CREED   (Netherlands)

Author keywords

Behavioral finance; Natural experiment; Price clustering

Indexed keywords

FINANCIAL MARKET; PRICE DYNAMICS; STOCK MARKET;

BENELUX; EURASIA; EUROPE; NETHERLANDS; WESTERN EUROPE;

EID: 33749442895     PISSN: 00142921     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.euroecorev.2005.09.001     Document Type: Article

References (26)

1. Aitken M., Brown P., Buckland C., Izan H.Y., and Walter T. Price clustering on the Australian stock exchange. Pacific-Basin Finance Journal 4 (1996) 297-314
2. Brenner G.A., and Brenner R. Memory and markets, or why are you paying $2.99 for a widget?. The Journal of Business 55 (1982) 147-158
3. Brown P., Chua A., and Mitchell J. The influence of cultural factors on price clustering: Evidence from Asia-Pacific stock markets. Pacific-Basin Finance Journal 10 (2002) 307-332
4. Christie W.G., and Schultz P.H. Why do NASDAQ market makers avoid odd-eighth quotes?. The Journal of Finance 49 (1994) 1813-1840
5. Christie W.G., and Schultz P.H. Why did NASDAQ market makers stop avoiding odd-eighth quotes?. The Journal of Finance 49 (1994) 1841-1860
6. Donaldson R.G., and Kim H.Y. Price barriers in the Dow Jones industrial average. The Journal of Financial and Quantitative Analysis 28 (1993) 313-330
7. Folkertsma C.K. The euro and psychological prices: Simulations of the worst-case scenario. De economist 150 (2002) 19-40
8. Friedman L. Psychological pricing in the food industry. In: Pillips A., and Williamson O. (Eds). Prices: Issues in Theory, Practice, and Public Policy (1967), University of Pennsylvania Press, Philadelphia 187-201
9. Hameed A., and Terry E. The effect of tick size on price clustering and trading volume. Journal of Business Finance & Accounting 25 (1998) 849-867
10. Harris L. Stock price clustering and discreteness. Review of Financial Studies 4 (1991) 389-415
11. Hirshleifer D. Investor psychology and asset pricing. Journal of Finance LVI (2001) 1533-1597
12. Holdershaw J., Gendall P., and Garland R. The widespread use of odd pricing in the retail sector. Marketing Bulletin 7 (1997) 53-58
13. Kahn C., Pennacxhi G., and Sopranzetti B. Bank deposit rate clustering: Theory and empirical evidence. Journal of Finance 54 (1999) 2185-2214
14. Kashyap A.K. Sticky prices: New evidence from retail catalogs. Quaterly Journal of Economics 110 (1995) 245-274
15. Koedijk K.G., and Stork P.A. Should we care? Psychological barriers in stock markets. Economics Letters 44 (1994) 427-432
16. Ley E., and Varian H.R. Are there psychological barriers in the Dow-Jones index?. Applied Financial Economics (1994) 217-224
17. Mitchell J. Clustering and psychological barriers: The importance of numbers. The Journal of Futures Markets 21 (2001) 395-428
18. Neiderhoffer V. Clustering of stock prices. Operations Research 13 (1965) 258-265
19. Niederhoffer V. A new look at clustering of market prices. Journal of Business 39 (1966) 309-313
20. Osborne M.F.M. The dynamics of stock trading. Econometrica 33 (1965) 88-111
21. Palmon O., Smith B.A., and Sopranzetti B.J. Clusetring in real estate prices: Determinants and consequences. Journal of Real Estate Research 26 (2004) 115-136
22. Schindler R.M., and Kirby P.N. Patterns of rightmost digits used in advertised prices: Implications for nine-ending effects. Journal of Consumer Research 24 (1997) 192-201
23. Simon H.A. A behavioral model of rational choice. Quarterly Journal of Economics 69 (1955) 99-118
24. Sopranzetti B.J., and Datar V. Price clustering in foreign exchange spot markets. Journal of Financial Markets 5 (2002) 411-417
25. Stiving M., and Winer R.S. An empirical analysis of price endings with scanner data. Journal of Consumer Research 24 (1997) 57-67
26. Ziemba W.T., Brumelle S.L., Gautier A., and Schwartz S.L. Dr. Z's 6/49 Lotto Guidebook (1986), Dr. Z Investments, Vancouver, Canada