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Schizophrenic Representative Investors

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

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

Philip Maymin

University of Bridgeport - School of Business; Vantage Sports

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)

University of Bridgeport - School of Business ( email )

126 Park Avenue
Bridgeport, CT 06601
United States

Vantage Sports ( email )

United States

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