(Routledge Studies in Economic Theory, Method and Philosophy)
by Emil Dinga (Author), Camelia Oprean-Stan (Author), Cristina-Roxana Tanasescu (Author), Vasile Bratian (Author)
This
book addresses the functioning of financial markets, in particular the
financial market model, and modelling. More specifically, the book
provides a model of adaptive preference in the financial market, rather
than the model of the adaptive financial market, which is mostly based
on Popper's objective propensity for the singular, i.e., unrepeatable,
event. As a result, the concept of preference, following Simon's theory
of satisficing, is developed in a logical way with the goal of supplying
a foundation for a robust theory of adaptive preference in financial
market behavior.
The book offers new insights into
financial market logic, and psychology: 1) advocating for the priority
of behavior over information - in opposition to traditional financial
market theories; 2) constructing the processes of (co)evolution adaptive
preference-financial market using the concept of fetal reaction norms -
between financial market and adaptive preference; 3) presenting a new
typology of information in the financial market, aimed at proving point
(1) above, as well as edifying an explicative mechanism of the
evolutionary nature and behavior of the (real) financial market; 4)
presenting sufficient, and necessary, principles or assumptions for
developing a theory of adaptive preference in the financial market; and
5) proposing a new interpretation of the pair genotype-phenotype in the
financial market model.
The book's distinguishing
feature is its research method, which is mainly logically rather than
historically or empirically based. As a result, the book is targeted at
generating debate about the best and most scientifically beneficial
method of approaching, analyzing, and modelling financial markets.
