This paper shows that price rigidity evolves in an economy populated by imperfectly rational agents who experiment with alternative rules of thumb. In the model, firms must set their prices in face of aggregate demand shocks. Their payoff depends on the level of aggregate demand, as well as on...

Abstract: This thesis studies several topics related to the area of model-independent and robust finance.<br>In particular, the work addresses valuation approaches that can be applied to determine robust price bounds for exotic derivatives which are calculable without imposing assumptions on the...