This paper examines the concept of adaptive markets proposed by Andrew Lo, which suggests that financial markets are not purely efficient but rather evolve dynamically in response to new information and changing conditions. Lo's framework integrates principles from traditional finance and behavioral economics to offer a more realistic model of market behavior. By understanding the implications of adaptive markets, investors...
Read more ↓This paper examines the concept of adaptive markets proposed by Andrew Lo, which suggests that financial markets are not purely efficient but rather evolve dynamically in response to new information and changing conditions. Lo's framework integrates principles from traditional finance and behavioral economics to offer a more realistic model of market behavior. By understanding the implications of adaptive markets, investors and policymakers may be better equipped to navigate the complexities of financial markets.
Read less ↑Tags: adaptive markets, adaptive strategies, Andrew Lo, competitive markets, economic environments, financial markets, investor adaptation, investor behavior, market dynamics, market efficiency
Category: Papers