The traditional financial paradigm seeks to understand financial markets by using models in
which markets are perfect, which includes agents who are “rational” and update their beliefs …

This paper studies market selection in an Arrow-Debreu economy with complete markets
where agents learn over misspecified models. In this setting, standard Bayesian learning …

We investigate market selection and bet pricing in a repeated prediction market model. We
derive the conditions for long-run survival of more than one agent (the crowd) and quantify …

In a repeated market for short-lived assets, we investigate wealth-driven selection among
investment rules that depend on endogenous market variables, such as current and past …

Technological innovation has been one of the fastest growing areas of economics
scholarship and one where history and philosophy have played important roles. Since the …

Evolutionary Finance (EF) explores financial markets as evolving biological systems.
Investors pursuing diverse investment strategies compete for the market capital. Some …

The paper models evolution in pecunia—in the realm of finance. Financial markets are
explored as evolving biological systems. Diverse investment strategies compete for the …

This paper analyzes a dynamic stochastic equilibrium model of an asset market based on
behavioral and evolutionary principles. The core of the model is a non-traditional game …

Evolutionary finance focuses on questions of “survival and extinction” of investment
strategies (portfolio rules) in the market selection process. It analyzes stochastic dynamics of …

In this paper I study the relationship between rationality and asset prices when agents have
heterogeneous and incorrect beliefs about future events. Using as a benchmark the pricing …