One of the most influential ideas in the past 30 years is the Efficient Markets Hypothesis, the
idea that market prices incorporate all information rationally and instantaneously. However …

The battle between proponents of the Efficient Markets Hypothesis and champions of
behavioral finance has never been more pitched, and little consensus exists as to which …

The efficient markets hypothesis (EMH) maintains that market prices fully reflect all available
information. Developed independently by Paul A. Samuelson and Eugene F. Fama in the …

Well‐functioning financial markets are key to efficient resource allocation in a capitalist
economy. While many managers express reservations about the accuracy of stock prices …

In the adaptive markets hypothesis (AMH) intelligent but fallible investors learn from and
adapt to changing economic environments. This implies that markets are not always efficient …

The models of portfolio selection and asset price dynamics in this volume seek to explain the
market dynamics of asset prices. Presenting a range of analytical, empirical, and numerical …

Behavioral Economics is the combination of psychology and economics that investigates
what happens in markets in which some of the agents display human limitations and …

We discuss why investors are likely to be overconfident and how this behavioral bias affects
investment decisions. Our analysis suggests that investor overconfidence can generate …

Publisher Summary Although there might be agreement that the standard paradigm does
not fully explain what is causing the evolution of speculative asset prices, there may be less …

The efficient markets hypothesis (EMH) has posited investment decision-makers as rational,
utility-maximizing individuals. Cognitive psychology, on the other hand, suggests that human …