Bottazzi, Giulio; Dindo, Pietro - In: Journal of Evolutionary Economics 23 (2013) 3, pp. 641-661
In this paper, we use a series of simple examples to illustrate how wealth-driven selection works in a market for Arrow securities. Our analysis delivers both a good and a bad message. The good message is that, when traders invest constant fractions of their wealth in each asset and have equal...