Traders in this simulation of an asset market endogenously select from available information sources in order to maximize expected profits. The information options include two noisy signals of future dividends (the fundamentals) and a simple trend following technical trading rule. Traders use...

In a dynamic asset pricing model informed traders receive a noisy signal of the value of a risky asset while uninformed traders learn to extract the information from the price. The relative popularity of the two strategies depends on past performance. An "intensity of choice" parameter is...

\tTraders in this model of an asset market have the opportunity to conduct individual research to acquire a noisy signal of a security's future value, or they can employ least-squares learning in an attempt at extracting the private information of other traders through observing the price. For a...

We estimate the intensity of choice parameter in heterogenous agent models in both a static and dynamic setting. Mean-variance optimizing agents choose among mutual funds of similar styles but varying performance. Actively managed funds have a lower Sharpe ratio than passive index funds, yet...