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Behaviour And Information On Financial Market

Author

Listed:
  • DINGA Emil

    (Romanian Academy)

Abstract

Generally, the main three logical models of financial markets (Efficient Market Hypothesis - EMH, Adaptive Market Hypothesis - AMH, and even - partially - Behavioural Market Hypothesis - BMH) take for granted the idea that information drives behaviour, therefore, information is always the channel through the decision is taken, no matter whether such a decision is optimal or sub-optimal. The paper critically examines such an "axiom" and proposes a causally inversion of the relation, that is, it argues that (in the most part), in fact, behaviour drives information, To this end, a new typology of information as well as a new typology of information mixes available to the economic agent are provided and discussed. The research is conducted in a logical key, and the two main findings are: a) the informational-based model of financial market should be replaced by a behaviour-based one; b) the informational efficiency of financial market should be replaced by a behavioural efficiency one. The paper claims its origin and target from institutionalism and evolutionism in the microeconomic academic research.

Suggested Citation

  • DINGA Emil, 2021. "Behaviour And Information On Financial Market," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 73(Special), pages 132-143, December.
    • Handle: RePEc:blg:reveco:v:73:y:2021:i:special:p:132-143
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/73S09dinga.pdf
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    More about this item

    Keywords

    information; behaviour; financial market; EMH; AMH;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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