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 …

This paper intends to contribute to the literature on the determinants of exchange rate
fluctuations. We build an agent-based model inspired by the literature on behavioral finance …

The wisdom of the crowd applied to financial markets asserts that prices represent a
consensus belief that is more accurate than individual beliefs. However, a market selection …

Evolutionary Finance explores financial markets as evolving biological systems. Investors
pursuing diverse investment strategies compete for the market capital. Some “survive” and …

In this paper, I consider an exchange economy with complete markets where agents have
heterogeneous beliefs and, possibly, preferences, and investigate the Market Selection …

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 …

We develop a simple agent-based financial market model in which speculators' market entry
decisions are subject to herding behavior and market risk. In addition, speculators' orders …