Adaptive Markets, Andrew W. Lo
Adaptive Markets, Andrew W. Lo
8 Rating(s)
List: $24.49 | Sale: $17.14
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Adaptive Markets
Financial Evolution at the Speed of Thought

Author: Andrew W. Lo

Narrator: Jonathan Yen

Unabridged: 20 hr 21 min

Format: Digital Audiobook Download

Publisher: Tantor Media

Published: 01/18/2018

Includes: Bonus Material Bonus Material Included

Synopsis

Half of all Americans have money in the stock market, yet economists can't agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe—and as financial bubbles, crashes, and crises suggest. This is one of the biggest debates in economics, and the value or futility of investment management and financial regulation hang on the outcome. In this groundbreaking book, Andrew W. Lo cuts through this debate with a new framework, the Adaptive Markets Hypothesis, in which rationality and irrationality coexist.

Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency isn't wrong but merely incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo's new paradigm explains how financial evolution shapes behavior and markets at the speed of thought—a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation.

About Andrew W. Lo

Andrew W. Lo is the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management, director of the MIT Laboratory for Financial Engineering, a principal investigator at the MIT Computer Science and Artificial Intelligence Laboratory, and an affiliated faculty member of the MIT Department of Electrical Engineering and Computer Science. He is also an external faculty member of the Santa Fe Institute and a research associate of the National Bureau of Economic Research. Lo received a BA in economics from Yale University in 1980 and an AM and PhD in economics from Harvard University in 1984.

Reviews

Goodreads review by Athan on January 11, 2019

Andrew Lo specializes in derivatives. What he does not know about them is really not worth knowing. Funny thing is, there isn’t one sentence in this book about derivatives. A very highly-regarded author and academic has written a book about the physiology of fear, the experiments of Danny Kahneman,......more

Goodreads review by Mbogo on September 18, 2017

As I was slogging through a lot of brain terms which I had little interest in memorizing (it seems Lo is a fan of neuroscience) I kept asking myself, I am halfway into the book and I still do not have a full grasp of what adaptive markets is all about. Without a primer from Andrew there was no way o......more

Goodreads review by Chris on January 19, 2019

A disjointed tour of mostly non-utility based approaches to predicting financial markets, taken mostly from a neuroscience/"behaviourist" perspective at the micro level and at a quick tour of simulations, agent-based perspective at the macro level. The fly-by of these two broad perspectives are capp......more

Goodreads review by Otto on May 23, 2019

What do financial markets have to do with Darwin or the neuropsychology of decision-making? A lot, it turns out. Lo's book gives some suggestive reasons to think in evolutionary terms, even if it falls short of providing a coherent alternative paradigm to the established models of financial economic......more

Goodreads review by Premal on February 25, 2018

Andy Lo is a nice guy. Nice people have good intentions. Some wise person once said, "The road to hell is paved with good intentions." The good: So many behavioral biases that demonstrate that people don't necessarily behave in a way that is consistent with decision-making axioms have been documented......more

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