How can financial models shape markets?
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warren
Apprentice
Joined: 13 Feb 2008
Posts: 5
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 Posted: 05/11/08 - 05:57 Post subject: |
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| Are financial models really powerful in shaping markets? I still can’t believe that this is how markets function and I am about to get more involved in economics and especially markets. How can financial models shape markets? What is their power and how come that they work? This is one great field of economics that I am interested in. |
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grover
Apprentice
Joined: 08 Mar 2006
Posts: 1
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| Posted: 06/10/08 - 01:51 Post subject: |
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| They work because there are some principles that they have incorporated in them that have proven to work on the market situation. You have different financial models and they are set for different kind of markets and they are mostly right, so people decide to use financial models to conduct their life on the market and when you have that many people using them, there is nothing else that you can expect then to see that the market is shaped by them as well. This is as simple as I can put it about the way that markets are shaped by financial models of a different kind. |
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