Journal of Financial Economics Vol. 83 No. 3 2007
Disagreement, tastes, and asset prices
Abstract
Standard asset pricing models assume that: (i) there is complete agreement among investors about probability distributions of future payoffs on assets; and (ii) investors choose asset holdings based solely on anticipated payoffs; that is, investment assets are not also consumption goods. Both assumptions are unrealistic. We provide a simple framework for studying how disagreement and tastes for assets as consumption goods can affect asset prices.
- DOI
- 10.1016/j.jfineco.2006.01.003
- Volume
- 83
- Issue
- 3
- Pages
- 667-689
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref