This book examines sustainable wealth formation and dynamic decision-making. The global economy experienced a veritable meltdown of asset markets in the years 2007-9, where many funds were overexposed to risky returns and suffered considerable losses. On the other hand, the long-term upswing in...

Introduction -- Problems and Trends in Global Economic Dynamics (Including Specific Examples): Recent Developments on Asset Pricing with Heterogeneous Beliefs and Adaptive Behaviour of Financial Markets -- Modeling House Price Dynamics with Heterogeneous Speculators -- A Reconsideration of the...

Part I The Fundamentals of Derivative Security Pricing -- 1 The Stock Option Problem -- 2 Stochastic Processes for Asset Price Modelling -- 3 An Initial Attempt at Pricing an Option -- 4 The Stochastic Differential Equation -- 5 Manipulating Stochastic Differential Equations and Stochastic...

The Classical Cournot Model -- Concave Oligopolies -- General Oligopolies -- Modified and Extended Oligopolies -- Oligopolies with Misspecified and Uncertain Price Functions, and Learning -- Overview and Directions for Future Research

Transferring Negative Externalities: Feedback Effects of Self-Protection Choices in a Two Hemispheres Model -- Structural Change, Economic Growth and Environmental Dynamics with Heterogeneous Agents -- Bifurcations and Chaotic Attractors in an Overlapping Generations Model with Negative...