%0 Book Section %T Why have asset price properties changed so little in 200 years %+ École polytechnique (X) %+ Mathématiques et Informatique pour la Complexité et les Systèmes (MICS) %A Bouchaud, Jean-Philippe %A Challet, Damien %@ 978-3-319-47704-6 %B Econophysics and Sociophysics: Recent Progress and Future Directions %I Springer %8 2017-02-27 %D 2017 %Z 1605.00634 %R 10.1007/978-3-319-47705-3 %Z Quantitative Finance [q-fin]/Computational Finance [q-fin.CP] %Z Physics [physics]Book sections %X We first review empirical evidence that asset prices have had episodes oflarge fluctuations and been inefficient for at least 200 years. We brieflyreview recent theoretical results as well as the neurological basis of trendfollowing and finally argue that these asset price properties can be attributedto two fundamental mechanisms that have not changed for many centuries: aninnate preference for trend following and the collective tendency to exploit asmuch as possible detectable price arbitrage, which leads to destabilizingfeedback loops. %G English %2 https://centralesupelec.hal.science/hal-01311113/document %2 https://centralesupelec.hal.science/hal-01311113/file/challet_asset_price.pdf %L hal-01311113 %U https://centralesupelec.hal.science/hal-01311113 %~ X %~ AO-ECONOMIE %~ X-DEP %~ CENTRALESUPELEC %~ MICS %~ UNIV-PARIS-SACLAY %~ CENTRALESUPELEC-SACLAY %~ X-SACLAY %~ CHAIRE-FIQUANT %~ GS-ENGINEERING %~ GS-COMPUTER-SCIENCE