Wealth Evolution and Distorted Financial Forecasts
Author(s) -
Blake LeBaron
Publication year - 2008
Publication title -
ssrn electronic journal
Language(s) - English
Resource type - Journals
ISSN - 1556-5068
DOI - 10.2139/ssrn.1122322
Subject(s) - economics , finance , business , financial economics , financial system
Evolutionary metaphors have been prominent in both economics and nance. They are often used as basic foundations for rational behavior and ecient markets. Theoretically, a mechanism which selects for rational investors actually requires many caveats, and is far from generic. This paper tests wealth based evolution in a simple, stylized agent-based nancial market. The setup borrows extensively from
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