Artikel
Dynamic exepectation theory: Insights for market participants
This paper develops a new methodology in order to study the role of dynamic expectations. Neither reference-point theories nor feedback models are sufficient to describe human expectations in a dynamic market environment. We use an interdisciplinary approach and demonstrate that expectations of non-learning agents are time-invariant and isotropic. On the contrary, learning enhances expectations. We uncover the "yardstick of expectations" in order to assess the impact of market developments on expectations. For the first time in the literature, we reveal new insights about the motion of dynamic expectations. Finally, the model is suitable for an AI approach and has major implications on the behaviour of market participants.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 12 ; Year: 2019 ; Issue: 2 ; Pages: 1-14 ; Basel: MDPI
- Classification
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Wirtschaft
Expectations; Speculations
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Optimization Techniques; Programming Models; Dynamic Analysis
Related Disciplines
- Subject
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expectation theory
information theory
risk management
financial dynamics
neuroeconomics
econopyhsics
- Event
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Geistige Schöpfung
- (who)
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Herzog, Bodo
- Event
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Veröffentlichung
- (who)
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MDPI
- (where)
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Basel
- (when)
-
2019
- DOI
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doi:10.3390/jrfm12020077
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Herzog, Bodo
- MDPI
Time of origin
- 2019
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