7 Ekim 2009 Çarşamba

Today Post::One of Mark Thoma's Best Posts

On how to think about research on modifications to the Efficient Markets Hypothesis:

http://economistsview.typepad.com/economistsview/2009/10/capital-market-theory-after-the-efficient-market-hypothesis.html

Principal agent problems (particularly involving asymmetric information) have been an enormous part of the problem, but as Mark notes, are likely not enough to by themselves explain the crisis. I think we also need to look carefully at prospect theory and norms, and the mechanisms households use to make decisions (for instance, the marketing literature shows us that many households make credit decisions based on initial monthly payment).

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