We examine the steady state properties of a dynamic model of skill acquisition to understand performance in a tournament setting. Empirically, we examine trends in professional golf earnings distributions and in the relative performance of U.S. and European professional golfers. We also estimate...

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. The asymptotic properties of the model and...

A counter example to the Grossman and Stiglitz (1980) finding of the impossibility of informationally efficient markets is produced using discrete choice dynamics to govern the evolution of the trader population that choose between being informed or uninformed based on past performance.

A least-squares model governs the learning process as traders attempt to extract private information from the market price of an asset. Replicator dynamics govern the evolution of the popularity of this strategy against the alternative, directly acquiring the private information through...

Investors select how to distrubute funds between a number of projects. This paper departs from the standard financial market model by endogenizing the intrinsic value of the assets to be dependend upon the amount of funding they attract. Investment strategies based on fundamental and a momentum...