[
    {
        "id": "authors:n3pn7-wbb45",
        "collection": "authors",
        "collection_id": "n3pn7-wbb45",
        "cite_using_url": "https://resolver.caltech.edu/CaltechAUTHORS:20140317-150805221",
        "type": "book_section",
        "title": "From Market Jaws to the Newton Method: The Geometry of How a Market Can Solve Systems of Equations",
        "book_title": "Handbook of Experimental Economics Results",
        "author": [
            {
                "family_name": "Bossaerts",
                "given_name": "Peter",
                "orcid": "0000-0003-2308-2603",
                "clpid": "Bossaerts-P"
            },
            {
                "family_name": "Plott",
                "given_name": "Charles R.",
                "orcid": "0000-0001-8363-3628",
                "clpid": "Plott-C-R"
            }
        ],
        "contributor": [
            {
                "family_name": "Plott",
                "given_name": "Charles R.",
                "clpid": "Plott-C-R"
            },
            {
                "family_name": "Smith",
                "given_name": "Vernon L.",
                "clpid": "Smith-V-L"
            }
        ],
        "abstract": "Since market equilibrium can be interpreted as a solution to a system of equations,\n\"price discovery,\" as it called in the language of market makers, can be viewed as having\n\"found\" the solution. Of course the information needed to even formulate the equations\ndoes not exist in one place so the idea that markets are \"searching\" for the solution to a\nsystem of equations as a numerical process would search, cannot be taken literally. Nevertheless,\nit is interesting that the language that has evolved from the world of practical\nmarkets has such an interpretation and curiosity alone makes one wonder how markets\nsettle on the particular pattern of prices that solve a particular system of equations.",
        "doi": "10.1016/S1574-0722(07)00002-9",
        "isbn": "9780444826428",
        "publisher": "Elsevier",
        "place_of_publication": "Amsterdam",
        "publication_date": "2008-06",
        "pages": "22-24"
    },
    {
        "id": "authors:ahvbc-ex998",
        "collection": "authors",
        "collection_id": "ahvbc-ex998",
        "cite_using_url": "https://resolver.caltech.edu/CaltechAUTHORS:20101014-101918850",
        "type": "book_section",
        "title": "Adding Prediction Risk to the Theory of Reward Learning",
        "book_title": "Reward and decision making in corticobasal ganglia networks",
        "author": [
            {
                "family_name": "Preuschoff",
                "given_name": "Kerstin",
                "clpid": "Preuschoff-K"
            },
            {
                "family_name": "Bossaerts",
                "given_name": "Peter",
                "orcid": "0000-0003-2308-2603",
                "clpid": "Bossaerts-P"
            }
        ],
        "abstract": "This article analyzesthe simple Rescorla\u2013Wagner learning rule from the vantage point of least squares learning theory. In particular, it suggests how measures of risk, such as prediction risk, can be used to adjust the learning constant in reinforcement learning. It argues that prediction risk is most effectively incorporated by scaling the prediction errors. This way, the learning rate needs adjusting only when the covariance between optimal predictions and past (scaled) prediction errors changes. Evidence is discussed that suggests that the dopaminergic system in the (human and nonhuman) primate brain encodes prediction risk, and that prediction errors are indeed scaled with prediction risk (adaptive encoding).",
        "doi": "10.1196/annals.1390.005",
        "isbn": "978-1-57331-674-3",
        "publisher": "New York Academy of Sciences",
        "place_of_publication": "Boston, MA",
        "publication_date": "2007-05",
        "pages": "135-146"
    },
    {
        "id": "authors:pncsz-tc885",
        "collection": "authors",
        "collection_id": "pncsz-tc885",
        "cite_using_url": "https://resolver.caltech.edu/CaltechAUTHORS:20140224-143305188",
        "type": "book_section",
        "title": "Price Discovery in Financial markets: the case of the CAPM",
        "book_title": "Information, finance, and general equilibrium",
        "author": [
            {
                "family_name": "Bossaerts",
                "given_name": "Peter",
                "orcid": "0000-0003-2308-2603",
                "clpid": "Bossaerts-P"
            },
            {
                "family_name": "Kleiman",
                "given_name": "Daniel",
                "clpid": "Kleiman-D"
            },
            {
                "family_name": "Plott",
                "given_name": "Charles",
                "orcid": "0000-0001-8363-3628",
                "clpid": "Plott-C-R"
            }
        ],
        "contributor": [
            {
                "family_name": "Plott",
                "given_name": "Charles R.",
                "clpid": "Plott-C-R"
            }
        ],
        "abstract": "We report on experiments of simple, repeated asset markets in two risky securities and one risk-free security, set up to test the Capital Asset Pricing Model (CAPM), which embeds the two most essential principles of modern asset pricing theory, namely, (i) financial markets equilibrate, (ii) in equilibrium risk premia are solely determined by covariance with aggregate risk.  Slow, but steady convergence towards the CAPM is discovered. The convergence process, however, halts before reaching the actual equilibrium.  There is ample evidence that subjects gradually move up in mean-variance space, in accordance with the CAPM.  Yet, adjustment stops as if the remaining trading time was insufficient to complete all the transactions that are needed to guarantee improvements in positions.  We conjecture that this is due to subjects' hesitance in the face of market thinness. Because the convergence process halts, statistical tests reject the CAPM.",
        "isbn": "9781840643954",
        "publisher": "Edward Elgar",
        "place_of_publication": "Cheltenham, UK",
        "publication_date": "1999-04-19",
        "pages": "445-492"
    }
]