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I analyze a model with heterogeneous investors who have incorrect beliefs about fundamentals. Investors think that they are right at first, but over time realize that they are wrong. The speed of the realization depends on investor confidence in own beliefs and arrival of new information. The...
Persistent link: https://www.econbiz.de/10011267843
We present an experiment for the study of learning in a complex task which requires both memorisation and the ability …
Persistent link: https://www.econbiz.de/10014223185
This paper develops and analyses a dynamic model, which combines both the adoption and the industry evolution theories …. We model the decision of adoption, learning entry and exit of firms. These decisions depend on the interaction of …. The model we suggest also analyses effects on industry evolution and social welfare. …
Persistent link: https://www.econbiz.de/10005621594
, corresponding research on learning about growth persistence is completely lacking. Hidden persistence is a novel way to introduce …
Persistent link: https://www.econbiz.de/10011111345
asset pricing model (CAPM) including size premiums and a time varying parameter model for the West African emerging market …
Persistent link: https://www.econbiz.de/10011108128
In this paper we analyze the Chilean Stock Market's efficiency level. The efficiency concept, relates financial asset prices, the outcome from investment decisions, with all the information available to economic agents in their rational economic decision making process. To corroborate the stock...
Persistent link: https://www.econbiz.de/10005619423
A test of the CAPM is developed conditional on a prior belief about the correlation between the true market return and … the inefficiency of the proxy. An extension of the proposed test to a CAPM with conditioning information links …
Persistent link: https://www.econbiz.de/10008543524
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, security expected returns are determined by both risk and misvaluation. This survey sketches a framework for...
Persistent link: https://www.econbiz.de/10005619847
This two chapter body of work examines empirical and theoretical aspects of self-tender offers. The first chapter is an empirical study of self-tender offers. This section gives the reader an opportunity to understand some of the simple mechanics and issues regarding self-tender offers in the...
Persistent link: https://www.econbiz.de/10005619923
We describe a candid model for learning, why and how learning transpires. We investigate the original as well as the … leading conditions of the learning process. We provide an insight into the realm of beliefs and their formation, their … the influence that learning in general has on human behavior. …
Persistent link: https://www.econbiz.de/10005015595