This chapter surveys work on dynamic heterogeneous agent models (HAMs) in economics
and finance. Emphasis is given to simple models that, at least to some extent, are tractable …

This chapter surveys research on agent-based models used in finance. It will concentrate on
models where the use of computational tools is critical for the process of crafting models …

Research in experimental psychology suggests that, in violation of Bayes' rule, most people
tend to “overreact” to unexpected and dramatic news events. This study of market efficiency …

The effects of noise on the world, and on our views of the world, are profound. Noise in the
sense of a large number of small events is often a causal factor much more powerful than a …

The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being
subsumed by a broader approach based upon the psychology of investors. In this approach …

People are overconfident. Overconfidence affects financial markets. How depends on who in
the market is overconfident and on how information is distributed. This paper examines …

Solomon, R. Stevenson & D. Schwartz, Corporations Law and Policy: Materials and
Problems 431-53 (1982). There remain exceptions. See, eg, R. Jennings & H. Marsh …

In recent years, scholars and policymakers have rediscovered the concept of industrial
districts-spatial concentrations offirms in the same industry or related industries. In this …

CURRENT THEORIES OF FINANCIAL markets have been unable to successfully deal with
the existence of financial intermediaries. In fact, there is very little theory which attempts to …

This paper develops a capital asset pricing theory in a market where noise traders interact
with information traders. Noise traders are traders who commit cognitive errors while …