Abstract
Abnormal trading behavior in e-markets, also known as market manipulation, is done with the aim of deceiving traders in order to obtain unusual profits. These behaviors harm the proper functioning and integrity of the market and are, therefore, detrimental to trading activities. Although many studies have investigated this issue, their focus is on modeling the detection method, and they have neglected the processes that lead to manipulation. So that, to questions such as: What is the main reason for the success of these manipulations? What is the central idea behind manipulative strategies? Are manipulative schemes based on a specific theory? No answer has scientifically been given yet. Accordingly, there is a knowledge gap in the literature; this study aims to provide this complementary perspective and fill this gap. In this study, as a pioneer in this field, we develop the concept of the trading behavior’s diffusion network. Then, we analyze and examine the diffusion process from the aspects of temporal dynamics of trading behaviors, diffusion network topology, diffusion patterns, and structural characteristics of the diffusion network. The results indicate significant differences in the diffusion process of manipulative behavior compared to regular trading behavior and random behavior. In addition, manipulators showed higher social influence (network centrality) in the diffusion network of manipulative behavior. Our findings bear significant implications for market supervisors and regular traders and provide a new dimension for researchers and supervisors in determining approaches and methods for detecting manipulation.
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Samira Khodabandehlou: Conceptualization, Methodology, Formal analysis, Investigation, Visualization, Writing- original draft, Writing- Reviewing and Editing. Alireza Hashemi Golpayegani: Conceptualization, Supervision.
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Khodabandehlou, S., Hashemi Golpayegani, S.A. How do abnormal trading behaviors diffuse in electronic markets?. Soc. Netw. Anal. Min. 14, 98 (2024). https://doi.org/10.1007/s13278-024-01262-5
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DOI: https://doi.org/10.1007/s13278-024-01262-5