Title: Chasing noise
Description: "We present a simple model in which rational but uninformed traders occasionally chase noise as if it were information, thereby amplifying sentiment shocks and moving prices away from fundamental values.  We fill a theoretical gap in the literature by showing conditions under which noise traders can have an impact on market equilibrium disproportionate to their size in the market.  The model offers a partial explanation for the surprisingly low market price of financial risk in the Spring of 2007"--National Bureau of Economic Research web site.