Another interesting book:
Asset Pricing under Asymmetric Information: 
Bubbles, Crashes, Technical Analysis, and Herding 
search.barnesandnoble.com

" ... models that demonstrate how asymmetric information 
affects asset prices and traders' information, which 
provide a theoretical explanation for technical analysis 
and illustrate why some investors "chase the trend." 
The reader is then introduced to herding models and 
informational cascades, which can arise in a setting where 
agents' decision-making is sequential. The insights 
derived from herding models are used to provide rational 
explanations for stock market crashes ... "