Evolutionary Foundations of Equilibria in Irrational Markets

Business & Finance, Economics, Macroeconomics, Theory of Economics
Cover of the book Evolutionary Foundations of Equilibria in Irrational Markets by Guo Ying Luo, Springer New York
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Guo Ying Luo ISBN: 9781461407126
Publisher: Springer New York Publication: November 19, 2011
Imprint: Springer Language: English
Author: Guo Ying Luo
ISBN: 9781461407126
Publisher: Springer New York
Publication: November 19, 2011
Imprint: Springer
Language: English

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 this impact economic equilibria?  Contemporary economists have agreed that a process similar to Darwin’s Theory of Natural Selection takes over, whereby equilibria are shaped not by the behavior of individual participants but by an environment outside its control (i.e., an environment with little concern for maximizing profits).  It is an environment in which those “selected” produce positive financial gains, but have no regard for how it was obtained or underlying motivations—and those participants suffering losses disappear altogether. 

Evolutionary Foundations of Equilibria in Irrational Markets proves traditional economic equilibria continue to occur despite natural selection in irrational markets.  It covers a wide sampling of equilibria under various scenarios, and each chapter addresses the results of these models at an aggregate level.  The text is supplemented with charts and figures to drive home key findings and proofs, making it of interest to students and researchers in the areas of economics and behavioral finance.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

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 this impact economic equilibria?  Contemporary economists have agreed that a process similar to Darwin’s Theory of Natural Selection takes over, whereby equilibria are shaped not by the behavior of individual participants but by an environment outside its control (i.e., an environment with little concern for maximizing profits).  It is an environment in which those “selected” produce positive financial gains, but have no regard for how it was obtained or underlying motivations—and those participants suffering losses disappear altogether. 

Evolutionary Foundations of Equilibria in Irrational Markets proves traditional economic equilibria continue to occur despite natural selection in irrational markets.  It covers a wide sampling of equilibria under various scenarios, and each chapter addresses the results of these models at an aggregate level.  The text is supplemented with charts and figures to drive home key findings and proofs, making it of interest to students and researchers in the areas of economics and behavioral finance.

More books from Springer New York

Cover of the book Handbook of Asian Criminology by Guo Ying Luo
Cover of the book Missing Data by Guo Ying Luo
Cover of the book Atomic Scale Characterization and First-Principles Studies of Si₃N₄ Interfaces by Guo Ying Luo
Cover of the book The Immunological Barriers to Regenerative Medicine by Guo Ying Luo
Cover of the book Structure of Solutions of Variational Problems by Guo Ying Luo
Cover of the book Sketching the Moon by Guo Ying Luo
Cover of the book Evidence-Based Practice in Clinical Social Work by Guo Ying Luo
Cover of the book Psychological Aspects of Rheumatoid Arthritis by Guo Ying Luo
Cover of the book In the Blink of an Eye by Guo Ying Luo
Cover of the book Endovascular Interventional Neuroradiology by Guo Ying Luo
Cover of the book Reading Across the Life Span by Guo Ying Luo
Cover of the book Monitoring Technologies in Acute Care Environments by Guo Ying Luo
Cover of the book Introduction to Linear Elasticity by Guo Ying Luo
Cover of the book Reviews of Environmental Contamination and Toxicology by Guo Ying Luo
Cover of the book Mobile Social Networking by Guo Ying Luo
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy