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in money-sharing games will make; and chapter 3 takes an existing theroetical model of stochastic decision-making and …
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theories. These markets anomalies have spawned a new approach to finance, one which as editor Richard Thaler puts it … Behavioral Finance collects together twenty-one recent articles that illustrate the power of this approach. These papers … demonstrate how specific departures from fully rational decision making by individual market agents can provide explanations of …
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This paper studies the effect of new fund flows on investment behavior and the resulting equilibrium price of risk. The Small Fund Industry model shows equilibria with overinvestment in unprofitable and underinvestment in profitable investment opportunities. The Large Fund Industry model derives...
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