On a Constructive Theory of Markets
Econometrics
2018-01-10 v1 General Finance
Abstract
This article is a prologue to the article "Why Markets are Inefficient: A Gambling 'Theory' of Financial Markets for Practitioners and Theorists." It presents important background for that article --- why gambling is important, even necessary, for real-world traders --- the reason for the superiority of the strategic/gambling approach to the competing market ideologies of market fundamentalism and the scientific approach --- and its potential to uncover profitable trading systems. Much of this article was drawn from Chapter 1 of the book "The Strategic Analysis of Financial Markets (in 2 volumes)" World Scientific, 2017.
Keywords
Cite
@article{arxiv.1801.02994,
title = {On a Constructive Theory of Markets},
author = {Steven D. Moffitt},
journal= {arXiv preprint arXiv:1801.02994},
year = {2018}
}
Comments
21 pages, 2 figures