BEHAVIOUR AND INFORMATION ON FINANCIAL MARKET

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.

Keywords: information, behaviour, financial market, EMH, AMH

JEL Classification: B41, D40, D81

Volume: 73, Issue: Special

Pages: 132 - 143

Publication date: December, 2021

DOI: 10.56043/reveco-2021-0050

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/73S09dinga.pdf

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