Financial Market Analysis And Behaviour The Adaptive Preference Hypothesis | Economics

This book addresses the functioning of financial markets in particular the financial market model and modelling. More specifically the book provides a model of adaptive preference in the financial market rather than the model of the adaptive financial market which is mostly based on Popper's objective propensity for the singular i.e. unrepeatable event. As a result the concept of preference following Simon's theory of satisficing is developed in a logical way with the goal of supplying a foundation for a robust theory of adaptive preference in financial market behavior. The book offers new insights into financial market logic and psychology: 1) advocating for the priority of behavior over information - in opposition to traditional financial market theories; 2) constructing the processes of (co)evolution adaptive preference-financial market using the concept of fetal reaction norms - between financial market and adaptive preference; 3) presenting a new typology of information in the financial market aimed at proving point (1) above as well as edifying an explicative mechanism of the evolutionary nature and behavior of the (real) financial market; 4) presenting sufficient and necessary principles or assumptions for developing a theory of adaptive preference in the financial market; and 5) proposing a new interpretation of the pair genotype-phenotype in the financial market model. The book's distinguishing feature is its research method which is mainly logically rather than historically or empirically based. As a result the book is targeted at generating debate about the best and most scientifically beneficial method of approaching analyzing and modelling financial markets. |Financial Market Analysis and Behaviour The Adaptive Preference Hypothesis | Economics