Dissecting Retail Investors’ Belief Formation Using Machine Learning: Evidence from Reddit, 2024 with Vivian Fang, and Tengfei Zhang
Published:
This study examines how crypto narratives influence retail investors' beliefs and their effects on cryptocurrency returns and liquidity. It tests theories on extrapolative beliefs and excess volatility, using machine learning to analyze Reddit posts. The research highlights the role of biased beliefs in shaping market outcomes.