It is no secret that the rational expectations framework has endured what many consider to be a well deserved bashing. From problems, such as, ad hoc specifications of functional forms for utility functions, to adoption of utility functions as units of modeling, to absence of equilibriums that...

This study provides formal theoretical evidence that value maximization is a rational behavioral, as opposed to rational expectations valuation rubric. Rational behavioral character of the value maximization rubric is evident in the axiomatic finding that, absent arrival of any unanticipated...

Suppose Rational Expectations Equilibriums (REE) that are inferred at time t materialize at time t+1. This study provides formal theoretical and empirical evidence that performance effects of skewness preference simultaneously can be evidence for demonstrations of full rationality (expertise),...