This book addresses the functioning of financialmarkets, in particular, the financialmarket model, and modelling. More specificall, the book provides a model of adaptive preference in the financialmarket rather than the model of the adaptive financialmarket, which is mostly based on Popper’s objective propensity for the singular, that is, unrepeatable, event. As a result, the concept of proference, following Simon’s theory of satisficing,is developed in a logical way with the goal of supplying a foundation for a robust theory of adaptive preference in financialmarket behaviour.
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