Evolutionary financial market research
The evolutionary financial market research ( English Evolutionary Finance ) explains the dynamics of financial markets through biological models of evolution.
These models study the interaction of strategies, whereby natural selection limits the variety of strategies, while mutation always creates new strategies. Hypothetically, this means that in the evolutionary competition for market capital, the irrational investors are pushed out of the market by the rational investors. This type of market evolution is the focus of evolutionary financial market research and embodies a counter-approach to traditional financial market theory.
The first evolutionary financial market models were developed at the Santa Fe Institute in the USA in the 1990s . They were based on computer simulations. Advances in the mathematics of dynamic systems meanwhile also allow many analytical statements in evolutionary financial market research.
The pioneers of evolutionary financial market research were Armen Alchian , Milton Friedman and Friedrich Hayek . Brian Arthur, John Holland and Doyne Farmer are researching this topic at the Santa Fe Institute, Thorsten Hens from the University of Zurich in Switzerland and Dirk Helbing and Didier Sornette at the ETH in this area.
Individual evidence
- ↑ Grotheer, C. (2006). Foxes, Rabbits & Scorpions. Evolutionary finance and behavioral finance are different animals. CFA Magazine, March-April, pp. 38-41.
- ↑ Hens, T. (2003). Behavioral and Evolutionary Finance: The New View on Financial Markets. Online (September 14, 2012): http://www.behavioralfinance.ch/domains/behavioralfinance_ch/data/Catalog/101875/BHF.pdf ( page no longer available , search in web archives ) Info: The link was automatically marked as defective . Please check the link according to the instructions and then remove this notice.
- ↑ Hens, T. (2012, July 4). When is momentum, when value? Finanz und Wirtschaft, No. 53, p. 16.
