Learning and adaptation's impact on market efficiency

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2010
Volume: 76
Issue: 3
Pages: 635-653

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A dynamic model with learning and adaptation captures the evolution in trader beliefs and trading strategies. Through a process of learning and observation, traders improve their understanding of the market. Traders also engage in a process of adaptation by switching between trading strategies based on past performance. The asymptotic properties are derived analytically, demonstrating that convergence to efficiency depends on the model of adaptation.

Technical Details

RePEc Handle
repec:eee:jeborg:v:76:y:2010:i:3:p:635-653
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25