Uncertainty, Rationality and Heterogeneity

Emilio Barucci and Claudio Fontana
Additional contact information
Emilio Barucci: Politecnico di Milano
Claudio Fontana: Université Paris Diderot (Paris 7)

Chapter Chapter 9 in Financial Markets Theory, 2017, pp 479-581 from Springer

Abstract: Abstract This chapter presents a critical analysis of several fundamental hypotheses underlying the theory developed in the previous chapters of the book. More specifically, the attention is focused on the notions of risk and uncertainty, on the classical assumptions of expected utility theory, on the agents’ rationality and on the imperfections of financial markets. By relaxing the assumptions made so far in the book, several alternative paradigms are proposed and their implications are discussed, also on the basis of the empirical evidence reported in the literature. Some basic aspects of behavioral finance are also explored and compared to the implications of classical asset pricing theory.

Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprfcp:978-1-4471-7322-9_9

Ordering information: This item can be ordered from
http://www.springer.com/9781447173229

DOI: 10.1007/978-1-4471-7322-9_9

Access Statistics for this chapter

More chapters in Springer Finance from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().