Author(s)

Edwin H. Neave¹, William R. Scott²

¹Bank of Montreal Professor Emeritus, Smith School of Business, Queen’s University, Kingston, Ontario, Canada.
²Professor Emeritus, University of Waterloo, Waterloo, Ontario, Canada.

Using a model of heterogeneous investors’ responses to changing information, this paper studies the impact of learning on equilibrium price changes. The paper develops the comparative statics of single period equilibrium conditions. It characterizes generally the variety of circumstances encountered in the literature.

Ultraorthodox Interpretations, Price System

Neave, E. and Scott, W. (2019) Information Processing and Financial Market Price Adjustments. Theoretical Economics Letters, 9, 2337-2353. doi: 10.4236/tel.2019.97148.