Adaptive Markets : Financial Evolution at the Speed of Thought / Andrew W. Lo.

Format:

Book

Author/Creator:

Lo, Andrew W., (author).

Contributor:

Lo, Andrew W.

Language:

English

Subjects (All):

Investments--Psychological aspects.

Investments.

Stock exchanges.

Efficient market theory.

Physical Description:

1 online resource (490 pages) : illustrations

Edition:

First paperback edition.

Place of Publication:

Princeton, NJ : Princeton University Press, [2019]

Language Note:

In English.

Summary:

"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." -- Publisher's description.

Contents:

Are we all Homo economicus now? – If you’re so smart, why aren’t you rich? – If you’re so rich, why aren’t you smart? – The power of narrative – The evolution revolution – The adaptive markets hypothesis – The Galapagos Islands of finance – Adaptive markets in action – Fear, greed, and financial crisis – Finance behaving badly – Fixing finance – To boldly go where no financier has gone before.

ISBN:

9780691196800

069119680X

OCLC:

1099435012