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On a Constructive Theory of Markets

Steven D. Moffitt

arXiv 7 Jan 2018 · Econometrics

arXiv:1801.02994 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This article is a prologue to the article "Why Markets are Inefficient: A Gambling 'Theory' of Financial Markets for Practitioners and Theorists." It presents important background for that article --- why gambling is important, even necessary, for real-world traders --- the reason for the superiority of the strategic/gambling approach to the competing market ideologies of market fundamentalism and the scientific approach --- and its potential to uncover profitable trading systems. Much of this article was drawn from Chapter 1 of the book "The Strategic Analysis of Financial Markets (in 2 volumes)" World Scientific, 2017.

Citation extraction

17
references
25
in-text mentions
17
distinct cited
4
self-citations
5,903
main-text words

appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Moffitt, S. D (2017) Theory self0.92844100%
2Moffitt, S. D (2017) The Strategic Analysis of Financial Markets, Volume 1: Framework self0.84333100%
3Moffitt, S. D (2017) The Strategic Analysis of Financial Markets, Volume 2: Trading System Analytics self0.64422100%
4Lakonishok, J. and Smidt, S (1988) Are seasonal anomalies real? a ninety-year perspective0.51121100%
5Ziemba, W (2012) Calendar Anomalies and Arbitrage0.51121100%
6Gama, P. M. and Vieira, E. F. S (2013) Another look at the holiday effect0.40511100%
7Lee, C. M. C., Shleifer, A., and Thaler, R. H (1991) Investor sentiment and the closed-end fund puzzle0.40511100%
8Smith, V., Suchanek, G. L., and Williams, A (1988) Bubbles, crashes, and endogenous expectations in experimental spot asset markets0.40511100%
9Ziemba, W. T (1994) World wide security market regularities0.40511100%
10Alevy, J. E., Haigh, M. S., and List, J (2006) Information cascades: Evidence from an experiment with financial market professionals0.40511100%

Showing the top 10 of 17 scored citations.