Academic finance has cleaved into an orthodox school emphasizing rational expectations and a behaviorist school emphasizing irrational exuberance. Rational Myopia bridges the divide. It shows that the rational learning of market traders can take both calm and turbulent forms and applies that insight to resolve some major puzzles in finance theory.
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Academic finance has cleaved into an orthodox school emphasizing rational expectations and a behaviorist school emphasizing irrational exuberance. Rational Myopia bridges the divide. It shows that the rational learning of market traders can take both calm and turbulent forms and applies that insight to resolve some major puzzles in finance theory.
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