Toward a General Model of Financial Markets

Nihad Aliyev and Xuezhong (Tony) He ()

No 371, Research Paper Series from Quantitative Finance Research Centre, University of Technology, Sydney

Abstract: This paper aims to discuss the possibilities of capturing efficient market hypothesis and behavioral finance under a general framework using the literature of decision theories and information sciences. The focus is centered on the broad definition of rationality, the imprecision and reliability of information. The main thesis advanced is that the root of behavioral anomalies comes from the imprecision and reliability of information. Modeling on basis of imprecision and reliability of information within the broad definition of rationality will lead us to a more general model of financial markets.

Keywords: Efficient markets; Behavioral finance; Decision theory; Information uncertainty (search for similar items in EconPapers)
JEL-codes: D81 G02 G10 G14 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2016-04-01
New Economics Papers: this item is included in nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:uts:rpaper:371

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