We define dynamic models as multiperiod models with no static representations and demonstrate that current prevalent asset pricing empirical implementations are inconsistent with dynamic equilibria. Specifically, empirical implementations are misspecified with respect to three essential asset...

We model differences among agents in their ability to recognise temporal patterns of prices. Using the concept of DeBruijin sequences in two dynamic models of markets, we demonstrate the existence of equilibria in which prices fluctuate in a pattern that is independent of the fundamentals and...

This paper studies models of population game dynamics where players make stochastic choices because of payoff perturbations. The goal is to obtain deterministic equilibrium selection, where the action distribution in the population globally converges to Nash equilibria with probability 1 in a...