Costly interpretation of asset prices brings an endogenous noise u into the price system. Even if investors were to get rid of the noise u in the price system by setting u ! 1, investors would not still be fully sophisticated and thus they would not be able to extract the best signal from the price if e < 1.
Feb 12, 2021 � We propose a model in which investors cannot costlessly process information from asset prices. At the trading stage, investors are boundedly�...
We propose a model in which investors spend effort to interpret the informational content of asset prices. Due to cognitive ability limitations,�...
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We propose a model in which investors cannot costlessly process information from asset prices. At the trading stage, investors are boundedly rational and�...
Costly interpretation of asset prices brings an en- dogenous noise ˜u into the price system. Even if in- vestors were to get rid of the noise ˜u in the�...
Costly Interpretation of Asset Prices. Motivation: Data is only information after it has been analyzed: investors need to extract information from market prices.
We propose a model in which investors cannot costlessly process information from asset prices. At the trading stage, investors are boundedly rational, and their�...
Apr 14, 2016 � We propose a model in which investors cannot costlessly process information from asset prices. At the trading stage, investors are boundedly�...
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Oct 10, 2017 � DP12360 Costly Interpretation of Asset Prices ... We propose a model in which investors cannot costlessly process information from asset prices.
We propose a model in which investors cannot costlessly process information from asset prices. At the trading stage, investors are boundedly rational,�...