Not for quotation Comments solicited Disagreement, Tastes, and Asset Prices (2004)
by
Eugene F. Fama
,
Kenneth R. French
BibTeX
@MISC{Fama04notfor,
author = {Eugene F. Fama and Kenneth R. French},
title = {Not for quotation Comments solicited Disagreement, Tastes, and Asset Prices},
year = {2004}
}
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Abstract
Standard asset pricing models assume (i) that 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.
