In this study we examine the evolution of price, volume, and the bid-ask spread after extreme 15 minute intraday price changes on the NYSE and the NASDAQ. We find that due to strong behavioral trading there is an overreaction. Furthermore we find that volatility which increases sharply at the event decays according to a power law with an exponent of ≈ 0.4, i.e., much faster than the autocorrela...

Perceived signal dependencies can be induced by behavioural biases such as clustering illusion, ambiguity aversion or confirmatory bias. The resultant dependencies will lead to time series profiles of prices in markets characterised by overconfident investors that manifest the empirically documented overreaction, momentum and mean reversion effects within a simple and robust modelling structure...

Sepsis due to the complications of bacterial infection and endotoxin in the blood is the leading cause of death in intensive care units in the United States. The death rate from this condition ranges between 30 and 70 percent under the best of care 1 Basically, sepsis is caused by an overreaction of the body’s host defenses to severe bacterial infection. However, the mechanisms that regulate th...

The Centers for Disease Control and Prevention recently reported that deaths due to prescription medications have increased for the eleventh year in a row. In 2010, more than 16,000 deaths were associated with prescription medications [1]. As tragic as this is for families of a lost one, it would be a cruel consequence if an overreaction to these legitimate concerns makes it more difficult for ...