Linear stochastic dierential equations (SDE) are expressed as an exactdiscrete model (EDM) and estimated with structural equation models(SEM) and the Kalman lter (KF) algorithm. The SEM likelihood is welldened even for the times series case and the SEM and KF approach yieldthe same likelihood....

"This volume introduces simple mathematical models of financial markets, focussing on the problems of pricing and hedging risky financial instruments whose price evolution depends on the prices of other risky assets, such as stocks or commodities. Over the past four decades trading in these...

In an information cascade experiment participants are confronted with artificial predecessors predicting in line with the BHW model (Bikchandani et al.,1992). Using the BDM (Becker et al., 1964) mechanism we study participants'probability perceptions based on maximum prices for participating in...

Global agierende Publikumsgesellschaften werden zunehmend mit dem spezifischen Verhalteneiner kulturell diversen Investorenöffentlichkeit konfrontiert. Vor diesem Hintergrundwerden in vorliegender Publikation entsprechende Hypothesen in Bezug auf ausgewähltekulturell bedingte Probleme an der...

The development of path-dependent processes basically refers to positive feedback in terms of increasing returns as the main driving forces of such processes. Furthermore, path dependence can be affected by context factors, such as different degrees of complexity. Up to now, it has been unclear...

Experten verfügen aufgrund ihrer Wissensbasis und ihrer domänenspezifischen Problemlösungsfähigkeitenüber dauerhafte Leistungsvorteile. Der deskriptiven Entscheidungsforschunghat die Berücksichtigung des Expertenwissens neue Impulse verliehen. So wird in der neuerenStrömung des...

In the framework of expected utility theory, risk attitudes are entirely capturedby the curvature of the utility function. In cumulative prospect theory (CPT) riskattitudes have an additional dimension: the weighting of probabilities. With thismodication, one question arises naturally: since...

Human decision making is a process guided by different and partly competing mo-tivations that can each dominate behavior and lead to different effects depending on strength and circumstances. “Over-stylizing” neglects such competing concerns and context-dependence, although it facilitates...

The satisficing approach is generalized and applied to finite n-person games.Based on direct elicitation of aspirations, we formally define the conceptof satisficing, which does not exclude (prior-free) optimality but includesit as a border case. We also review some experiments on strategic...