1. Evolution, Irrationality and Perfectly Competitive Equilibrium -- 2. Evolution, Irrationality and Monopolistically Competitive Equilibrium -- 3. Evolution and Informationally Efficient Equilibrium in a Commodity Futures Market -- 4. Natural Selection, Random Shocks and Market Efficiency in a...

We model the dynamic survival of earnings fixated investors in a competitive securities market that allows for learning and arbitrage and that is populated by heterogeneous investors. Our model is distinct from those based on aggressive trading by overconfident investors. We prove that in the...

Chapter 1 Introduction -- Chapter 2 Conservatism bias and asset price overreaction or underreaction to new information in a competitive securities market -- Chapter 3 Conservatism bias and asset price overreaction or underreaction to new information in the presence of strategic interaction --...

Profit maximization is the usual prerequisite for achievement of a perfectly competitive equilibrium. However, for a long time it has been thought that this principle of profit maximization can be replaced by natural selection. This paper shows analytically that with the market selection...

This paper uses an evolutionary approach to explain the origin of money as media of exchange in a primitive economy, where agents specialize in production for the purpose of trading for their own consumption goods. A general class of dynamics, which is consistent with Darwinian dynamics, is...