Market selection when markets are incomplete
Article Abstract:
A theory of market selection that applies to complete and some incomplete market economies is discussed. Belief accuracy is stated to be a critical factor in determining the fate of agents' wealth. It is concluded that the agents whose beliefs have the highest market entropy will dominate the economy.
Publisher: Elsevier B.V.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2005
Financial markets, Entropy (Information theory)
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2005
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Genetic learning as an explanation of stylized facts of foreign exchange markets
Article Abstract:
The Kareken-Wallace model of exchange rate formation in a two-country over-lapping generations world is examined. A dynamic version of the model in which agents' decision rules are updated using genetic algorithms is presented.
Publisher: Elsevier B.V.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2005
Usage, Foreign exchange, Foreign exchange rates, Genetic algorithms, Econometric models
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 2005
User Contributions:
Comment about this article or add new information about this topic:
Subjects list: United Kingdom, Analysis
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