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Title: |
Rationality and Stock Market Behavior: What
Theoretical Framework (If Any?). |
| Author: |
Sacco, Pier
Luigi |
| Author
Affiliation: |
European U
Institute |
| Source: |
International Economic Journal, Winter 1991, v. 5, no. 4, pp. 17-41 |
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Publication Date: |
Winter 1991 |
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Abstract: |
To the current state of knowledge the
explanation of stock market behavior raises difficult theoretical
problems. In this paper a critical review of the theoretical research on
the issue is made. The traditional adaptive characterization of
rationality is criticized, and it is proposed that a new theoretical
framework, namely the projectual characterization of rationality, might
be the right perspective from which to look at the thing. The empirical
implications of this new approach, and its implications in terms of
testable propositions are at the moment poorly understood, however; some
suggestions for future research, both theoretical and empirical, are
provided. |
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