Adaptive markets : financial evolution at the speed of thought
By: Lo, Andrew W.
Publisher: Princeton Princeton University Press 2019Description: x, 489p.ISBN: 9780691191362 .Subject(s): Stock exchanges | Efficient market theory | FinanceDDC classification: 332 | L78a Summary: A new, evolutionary explanation of markets and investor behavior Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. The debate is one of the biggest in economics, and the value or futility of investment management and financial regulation hangs on the answer. In this groundbreaking book, Andrew Lo transforms the debate with a powerful new framework in which rationality and irrationality coexist―the Adaptive Markets Hypothesis. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution shapes behavior and markets at the speed of thought―a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. An ambitious new answer to fundamental questions about economics and investing, Adaptive Markets is essential reading for anyone who wants to understand how markets really work.Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Books | PK Kelkar Library, IIT Kanpur | General Stacks | 332 L78a (Browse shelf) | Available | A186074 |
Browsing PK Kelkar Library, IIT Kanpur Shelves , Collection code: General Stacks Close shelf browser
332 In8b The business cycle in the post-war world | 332 J78f The financial inclusion imperative and sustainable approaches | 332 K899P PUZZLES OF FINANCE | 332 L78a Adaptive markets | 332 M583 MICRO-CREDIT, POVERTY AND EMPOWERMENT | 332 M583 Microfinance in India | 332 M687e5 THE ECONOMICS OF MONEY, BANKING, AND FINANCIAL MARKETS |
A new, evolutionary explanation of markets and investor behavior
Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. The debate is one of the biggest in economics, and the value or futility of investment management and financial regulation hangs on the answer. In this groundbreaking book, Andrew Lo transforms the debate with a powerful new framework in which rationality and irrationality coexist―the Adaptive Markets Hypothesis. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution shapes behavior and markets at the speed of thought―a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. An ambitious new answer to fundamental questions about economics and investing, Adaptive Markets is essential reading for anyone who wants to understand how markets really work.
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