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Models of Compelxity in Economics and Finance

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  • Brock, W.A.
  • Hommes, C.H.

Abstract

We have set out a general framework for adaptive belief systems in asset pricing thery. Fluctuations in prices and returns are driven by an evolutionary dynamics between traders with different expectations about prices.

Suggested Citation

  • Brock, W.A. & Hommes, C.H., 1997. "Models of Compelxity in Economics and Finance," Working papers 9706, Wisconsin Madison - Social Systems.
    • Handle: RePEc:att:wimass:9706
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    File URL: http://www.ssc.wisc.edu/econ/archive/wp9706.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    FINANCIAL MARKET ; FLUCTUATIONS;

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing

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