Different forecasting behaviors affect investors' trading decisions and lead to qualitatively different asset price trajectories. It has been shown in the literature that the weights that investors place on observed asset price changes when forecasting future price changes, and the nature of...

Investors' forecasting behavior affects their trading decisions and the resulting asset prices. It has been shown in the literature how different, apparently reasonable investor forecasting behaviors can lead to qualitatively different asset price trajectories. For example, investors' confidence...

In this paper a dynamic and stochastic model of the well-known knapsack problem is developed and analyzed. The problem is motivated by a wide variety of real-world applications. Objects of random weight and reward arrive according to a stochastic process in time. The weights and rewards...