Taming the Animal Spirits of the Stock Markets: A Behavioral Approach to Securities Regulation

Donald C. Langevoort

doi:10.2139/ssrn.305241

journal article Jan 01, 2002

Taming the Animal Spirits of the Stock Markets: A Behavioral Approach to Securities Regulation

Donald C. Langevoort

SSRN Electronic Journal · Elsevier BV

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References

16

[1]

U.S (1988) 10.1002/ar.1092200215

[2]

E G See Efficient Capital Markets, the Crash and the Fraud on the Market Theory

[3]

Cornell L Rev "For some critics from the conventional law and economics side, see Paul Mahoney, Precaution Costs and the Law of Fraud in Impersonal Markets, 78 Va" L. Rev (1989)

[4]

Jonathan Macey Bad Economics: An Analysis of the Fraud on the Market Theory 10.2307/1228910

[5]

. L Stan (1990) 10.1787/data-00649-en

[6]

See Langevoort 10.1007/springerreference_1373

[7]

"The Fraud on the Market Theory, 95 Harv" L. Rev (1982)

[8]

Of course, one could devise substitute reliance standards

[9]

re Apple Computer Sec. Litig., 886 F.2d 1109 (9 th Cir (1989) 10.2307/1341484

[10]

Wielgos Commonwealth Edison, 892 F (1989)

[11]

"My focus is first on the latter: is it clear that typical investors do not rely on puffery? There is little research that studies this specifically, and so judges are guessing" Here, we run into the ever-troublesome borderline between the normative and the descriptive

[12]

See Jennifer "The Resurrection of the Dodo: The Unfortunate Re-emergence of the Puffery Defense in Private Securities Fraud Actions, 59 Ohio St" L.J (1998)

[13]

E G Lasker V New York State Elec. & Gas Co., 85 F.3d 35 (2d Cir (1996)

[14]

Raab V General Physics Corp., 4 F.3d 286 (4 th Cir (1993)

[15]

Eisenstadt V. Centel (1997)

[16]

To be sure, one could say that there is a normative dimension here, and that judges are saying that investors should not rely on these things, whether or not they do in fact. For a discussion of judicial heuristics in this area, see Stephen Bainbridge & G. Mitu Gulati, Judging Shortcuts: How Do Judges Maximize?

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Published: Jan 01, 2002

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Donald C. Langevoort

Cite This Article

Donald C. Langevoort (2002). Taming the Animal Spirits of the Stock Markets: A Behavioral Approach to Securities Regulation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.305241

Taming the Animal Spirits of the Stock Markets: A Behavioral Approach to Securities Regulation

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