A new approach to asset pricing with rational agents behaving strategically

The volatility of stock prices is difficult to explain within the confines of rational pricing models. Changes in prices have become permanent; Therefore, as we keep the hypothesis of a rational behavior of agents, we must give a new explanation to the pricing of financial assets at any moment of time. In a model based on an original mathematical framework, we introduce persistent time-varying prices resulting from strategic interactions between rational agents. We demonstrate that in a close to equilibrium market, actual prices give the best approximation of the fundamental value; We also explain why, in some circumstances, rational behavior may lead to the development of a bubble or the surge of a financial crisis.