Adaptive Markets: Financial Evolution at the Speed of Thought Audiobook (Free)

Half of all Americans have profit the currency markets, yet economists can’t agree on whether investors and markets are rational and efficient, seeing that modern financial theory assumes, or irrational and inefficient, as behavioral economists believe-and while financial bubbles, crashes, and crises suggest. This is one of the biggest debates in economics, and the worthiness or futility of expenditure management and economic regulation hang on the outcome. With this groundbreaking publication, Andrew W. Lo slashes through this controversy with a fresh construction, the Adaptive Marketplaces Hypothesis, where rationality and irrationality coexist.

Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Market segments shows that the theory of market efficiency isn’t wrong but simply incomplete. When marketplaces are unstable, traders react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution forms behavior and markets at the speed of thought-a fact uncovered by swings between balance and crisis, income and loss, and development and regulation.