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What are the implications for behavior in markets? I define the corresponding equilibrium concept, Dynamic Cursed Expectations Equilibrium, and show that in an asset pricing model, it leads to (1) trading where rational agents would not trade, and (2) overpricing of risky assets. 8/

Nov 20, 2024, 4:06 PM

Record data

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    "text": "What are the implications for behavior in markets?\n\nI define the corresponding equilibrium concept, Dynamic Cursed Expectations Equilibrium, and show that in an asset pricing model, it leads to (1) trading where rational agents would not trade, and (2) overpricing of risky assets. 8/",
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