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Information Processing and Financial Market Price Adjustments
Bank of Montreal Professor Emeritus, Smith School of Business, Queen’s University, Kingston, Ontario, Canada
Professor Emeritus, University of Waterloo, Waterloo, Ontario, Canada
- 1 Bank of Montreal Professor Emeritus, Smith School of Business, Queen’s University, Kingston, Ontario, Canada
- 2 Professor Emeritus, University of Waterloo, Waterloo, Ontario, Canada
Theoretical Economics Letters·Volume 09 (2019)·Pages 2337–2353·Published 29 August 2019·DOI10.4236/tel.2019.97148
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Abstract
Using a model of heterogeneous investors’ responses to changing information, this paper studies the impact of learning on equilibrium price changes. The paper develops the comparative statics of single period equilibrium conditions. It characterizes generally the variety of circumstances encountered in the literature.
KeywordsUltraorthodox InterpretationsPrice System
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