Dr. Kathryn Kaminski, Visiting Scientist at the MIT Laboratory for Financial Engineering, presented her paper, “Adaptive Markets and Neuro-Finance,” at QuantCon 2018. You can find her video from QuantCon 2018 below, along with a brief summary.
Adaptive Markets and Neuro-Finance
Markets are highly adaptive, competitive and dynamic. Over time the financial environment changes, market participants need to be able to adapt with it to be competitive and to survive. Financial markets are made up of people and human decision-making can be complex and contextual.
Traditional concepts such as rational expectations become less clear when emotion and behavior are involved. This talk reviews Andrew Lo’s theory of Adaptive Markets and discusses some preliminary concepts in Neuro-finance.