Handbook of Financial Markets: Dynamics and Evolution

Nine major original essays explain how financial markets determine asset prices

Thorsten Hens (Edited by), Klaus Reiner Schenk-Hoppe (Edited by)

9780123742582, Elsevier Science

Hardback, published 21 February 2009

608 pages
23.4 x 19 x 3.4 cm, 1.21 kg

"The research frontier of finance is moving in an ecological direction where trading strategies compete for profits like species in an ecosystem. This volume, written by leaders in the field, does an excellent job of bringing the reader up to date in this novel, important, and fascinating research area." --William A. Brock, The University of Wisconsin at Madison

The models of portfolio selection and asset price dynamics in this volume seek to explain the market dynamics of asset prices. Presenting a range of analytical, empirical, and numerical techniques as well as several different modeling approaches, the authors depict the state of debate on the market selection hypothesis. By explicitly assuming the heterogeneity of investors, they present models that are descriptive and normative as well, making the volume useful for both finance theorists and financial practitioners.

"Introduction"--Thorsten Hens and Klaus Reiner Schenk-Hoppé
1. "Thought and Behavioral Contagion in Capital Markets"--David Hirshleifer and Siew Hong Teoh
2. "How markets digest supply and demand and slowly incorporate information into prices"--Jean-Philippe Bouchaud, J. Doyne Farmer, and Fabrizio Lillo
3. "Stochastic Behavioral Asset Pricing Models and the Stylized Facts"--Thomas Lux
4. "Complex Evolutionary Systems in Behavioral Finance"--Cars Hommes and Florian Wagener
5. "Heterogeneity, Market Mechanisms, and Asset Price Dynamics"--Carl Chiarella, Xue-Zhong He and Roberto Dieci
6. "Perfect Forecasting and Behavioral Heterogeneities"--Jan Wenzelburger
7. "Market Selection and Asset Pricing"--Lawrence Blume and David Easley
8. "Rational Diverse Beliefs and Market Volatility"--Mordecai Kurz
9. "Evolutionary Finance"--Igor V. Evstigneev, Thorsten Hens, Klaus Reiner Schenk-Hoppé

Subject Areas: Personal finance [VSB], Investment & securities [KFFM], Finance [KFF]