`Managing Demand' for Peer Reviews
Darwin and Finance
Financial market research celebrates Charles Darwin's 200th birthday with the publication of the Handbook of Financial Markets: Dynamics and Evolution. This volume in the Handbooks in Finance series presents contributions of leading researchers to the evolutionary dynamics in financial markets. Darwin's insights on natural selection continue to inspire 150 years after their publication!
HANDBOOK OF FINANCIAL MARKETS: Dynamics and Evolution, edited by Thorsten Hens and Klaus Reiner Schenk-Hoppé, North-Holland, 2009. 608 pages. Volume of the Handbooks in Finance edited by William T. Ziemba
Andrei Shleifer (Harvard University)
"Mathematical analysis of evolutionary dynamics in financial markets has made significant strides in the last 20 years. The chapters in this Handbook present some of the most important contributions to this expanding literature."
William A. Brock (University of Wisconsin at Madison)
"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."
Hersh Shefrin (Santa Clara University)
"Hens and Schenk-Hoppé's edited collection provides deep and important insights about the impact of investor heterogeneity on market dynamics. Focused research on this topic is long overdue, making this book a welcome advance."
CONTENTS
PREFACE "Introduction"
Thorsten Hens and Klaus Reiner Schenk-Hoppé
CHAPTER 1. "Thought and Behavior Contagion in Capital Markets"
David Hirshleifer and Siew Hong Teoh
CHAPTER 2. "How Markets Slowly Digest Changes in Supply and Demand"
Jean-Philippe Bouchaud, J. Doyne Farmer, and Fabrizio Lillo
CHAPTER 3. "Stochastic Behavioral Asset-Pricing Models and the Stylized Facts"
Thomas Lux
CHAPTER 4. "Complex Evolutionary Systems in Behavioral Finance"
Cars Hommes and Florian Wagener
CHAPTER 5. "Heterogeneity, Market Mechanisms, and Asset Price Dynamics"
Carl Chiarella, Xue-Zhong He and Roberto Dieci
CHAPTER 6. "Perfect Forecasting, Behavioral Heterogeneities, and Asset Prices"
Jan Wenzelburger
CHAPTER 7. "Market Selection and Asset Pricing"
Lawrence Blume and David Easley
CHAPTER 8. "Rational Diverse Beliefs and Market Volatility"
Mordecai Kurz
CHAPTER 9. "Evolutionary Finance"
Igor V. Evstigneev, Thorsten Hens, Klaus Reiner Schenk-Hoppé
Stability of Financial Markets: An Evolutionary Approach
This joint project with Terje Lensberg (NHH, Bergen, Norway) is funded by the Norwegian Finance Market Fund (2008-2010). The research output comprises:
Parking: Unwanted Insights from Economics
MSc in Financial Mathematics
PhD students
Centenary Chair