In this paper we analyze a dynamic, asset pricing model where an arbitrary number of heterogeneous, procedurally rational investors divide their wealth between two assets. Both fundamental dividend process and behavior of traders are modeled in a very general way. In particular, agents' choices...

We consider a simple pure exchange economy with two assets, one riskless, yielding a constant return, and one risky, paying a stochastic dividend, and we assume trading to take place in discrete time inside an endogenous price formation setting. Traders demand for the risky asset is expressed as...

We consider a simple asset-pricing model with one risky and one riskless asset in discrete time. In each trading period heterogeneous boundedly rational agents form their individual demand for the risky asset, and then the price of the asset is determined via Walrasian mechanism imposing a...