In this paper, a model of bounded rational investors investing their portfolio in a passive investment vehicle (e.g., an Exchange Traded Fund replicating a broad index) or an actively managed fund is presented. The model proposes that the quick reswitching of these short-term oriented investors...

This paper presents a Heterogeneous Agent Model of a financial market with chartist and fundamentalist traders that exhibit bounded rationality and short-term thinking to explain the effect of under and overreaction to news. The existence of the Market Maker's finite price adjustment speed leads...

Die Soziale Marktwirtschaft in der Bundesrepublik Deutschland ist entscheidend durch die sogenannte "Freiburger Schule" initiiert und geprägt, deren geistiger Mentor und Wegbereiter unbestritten Walter Eucken war. Der Erfolg seiner wirtschaftsordnungspolitischen Konzeption ließ das Interesse...