Boundedly Rational Exuberance and Financialized Markets
A talk by Bertrand Munier, PhD, Professor of Economics at Arts-et-Métiers-ParisTech and Institute d'Administration des Enterprises de Paris
“Financialized markets” are the sorts of markets on which final products serve also as underlyings to financial investments. This “financialization” feature changes the market model from the simple Walrasian equilibrium to a negotiation market out of which a very volatile price pattern emerges. A partial equilibrium setting is presented, and then connected to a general computable equilibrium model through simulations.
Presented by the Department of Finance and Risk Engineering, the Morton L. Topfer Chair Lecture Series, and the the Research Center for Risk Engineering.
Food will be served.