Schizophrenic Representative Investors

Complex Systems (2013), Vol. 22, No. 1, pp. 61-73

18 Pages Posted: 27 Apr 2010 Last revised: 14 Jul 2013

See all articles by Philip Maymin

Philip Maymin

Fairfield University - Charles F. Dolan School of Business; Athletes Unlimited

Date Written: February 16, 2013


Representative investors whose behavior is modeled by a deterministic finite automaton generate complexity both in the time series of each asset and in the cross-sectional correlation when the rule governing their behavior is schizophrenic, meaning the investor holds multiple seemingly contradictory beliefs simultaneously, either by switching between two different rules at each time step, or computing different responses to different assets.

Keywords: complexity, representative investor, deterministic, behavioural

JEL Classification: G10, G12

Suggested Citation

Maymin, Philip, Schizophrenic Representative Investors (February 16, 2013). Complex Systems (2013), Vol. 22, No. 1, pp. 61-73, Available at SSRN: or

Philip Maymin (Contact Author)

Fairfield University - Charles F. Dolan School of Business ( email )

N. Benson Road
Fairfield, CT 06824
United States

Athletes Unlimited ( email )

888 7th Avenue
New York, NY 10106
United States

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