The economic concept of equilibrium infers rational participants, yet what happens when analysts and traders behave unpredictably? Darwin takes over. This book shows how traditional economic equilibria can exist despite natural selection in irrational markets.
The economic concept of equilibrium infers rational participants, yet what happens when analysts and traders behave unpredictably? Darwin takes ove...
Asset Price Response to New Information examines the effect of two types of psychological biases (namely, conservatism bias and representativeness heuristic) on the asset price reaction to new information. The author constructs various models of a competitive securities market or a security market allowing for strategic interaction among traders to prove rigorously that either conservatism or representativeness is capable of generating both asset price overreaction and underreaction to new information. The results shed some new insights on the phenomena of the asset price overreaction...
Asset Price Response to New Information examines the effect of two types of psychological biases (namely, conservatism bias and representativen...
One of the core building blocks of traditional economic theory is the concept of equilibrium, a state of the world in which economic forces are balanced and in the absence of external influences the values of economic variables remain static. Many traditional equilibrium models, or equilibria, are established based on the rational behavior of individuals within financial markets, such as traders, market analysts, and investing firms, and their ability to maximize profits, no matter the cost. Yet what happens when these market participants behave in an irrational manner, and how does...
One of the core building blocks of traditional economic theory is the concept of equilibrium, a state of the world in which economic forces are bal...
