A new, evolutionary explanation of markets and investor behavior Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. The debate is one of the biggest in economics, and the value or futility of investment management and financial regulation hangs on the answer. In this groundbreaking book, Andrew Lo transforms the debate with a powerful new framework in which rationality and irrationality coexist—the Adaptive Markets Hypothesis. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution shapes behavior and markets at the speed of thought—a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. An ambitious new answer to fundamental questions about economics and investing, Adaptive Markets is essential reading for anyone who wants to understand how markets really work.

Summarizes the current state of both theoretical and experimental knowledge about learning in animals.

Current estimates suggest that between one and three percent of people living in the United States will receive a diagnosis of mental retardation. Mental retardation, a condition characterized by deficits in intellectual capabilities and adaptive behavior, can be particularly hard to diagnose in the mild range of the disability. The U.S. Social Security Administration (SSA) provides income support and medical benefits to individuals with cognitive limitations who experience significant problems in their ability to perform work and may therefore be in need of governmental support. Addressing the concern that SSA's current procedures are consistent with current scientific and professional practices, this book evaluates the process used by SSA to determine eligibility for these benefits. It examines the adequacy of the SSA definition of mental retardation and its current procedures for assessing intellectual capabilities, discusses adaptive behavior and its assessment, advises on ways to combine intellectual and adaptive assessment to provide a complete profile of an individual's capabilities, and clarifies ways to differentiate mental retardation from other conditions.

This book compiles key articles of the simple heuristics program published across journals in different disciplines. It introduces the evolution and structure of the program, and puts each of the articles into context by short introductions. These articles present theory, real-world applications, and a sample of the large number of existing experimental studies that provide evidence for people's adaptive use of heuristics.

Adaptive Behavior Assessment System-II summarizes information on adaptive behavior and skills as well as general issues in adaptive behavior assessment with the goal of promoting sound assessment practice during uses, interpretations, and applications of the Adaptive Behavior Assessment System-II. Adaptive behavior and skills refer to personal qualities associated with the ability to meet one's personal needs such as communication, self-care, socialization, etc. and those of others. Data from measures of adaptive behavior have been used most commonly in assessment and intervention services for persons with mental retardation. However, the display of adaptive behaviors and skills is relevant to all persons. The Adaptive Behavior Assessment System-II (ABAS-II) provides a comprehensive, norm-referenced assessment of the adaptive behavior and skills of individuals from birth through age 89. The comprehensive natures of the ABAS-II, ease in administration and scoring, and wide age range have resulted in its widespread use for a large number of assessment purposes. The book provides practical information and thus serves as a valuable resource for those who use the ABAS-II. - Assists in the functional use of the ABAS-II - Provides case studies illustrating use of the ABAS-II in comprehensive assessment and intervention planning - Reviews scholarship on adaptive behaviors and skills - Describes legal, ethical, and other professional standards and guidelines that apply to the use of the ABAS-II and other measures of adaptive behavior - Discusses the use of the ABAS-II with autism, mental retardation; young children and those in elementary and secondary school; as well as incarcerated persons being evaluated for possible mental retardation