Are Probabilities Used in Markets?

Working in a complete-markets setting, a property of asset demands in identified that is inconsistent with the investor's preference being based on probabilities. In this way, a market counterpart of the Ellsberg Paradox is provided.

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Year of publication:	1999
Authors:	Epstein, L.G.
Institutions:	University of Rochester - Center for Economic Research (RCER)
Subject:	FINANCIAL MARKET \| SECURITIES \| DEMAND \| INVESTMENTS

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Extent:	application/pdf
Series:	RCER Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 464 7 pages
Classification:	G15 - International Financial Markets ; G12 - Asset Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005200791