Sergei received his BSc in Pure Mathematics and MSc in Applied Mathematics and Informatics, both from South Ural State University (Russia), and PhD in Economics from the University of Manchester (UK). He has a number of publications in both mathematics and economics.

Sergei Belkov

Research Interests:

My research is focused on study of new types of Evolutionary Behavioural Finance (EBF) models. The main objective is to create a plausible alternative to the conventional Walrasian equilibrium theory based on the hypothesis of full rationality of market players. Rather than maximizing typically unobservable individual utility functions, traders/investors are permitted to have a whole variety of patterns of strategic behaviour depending on their individual psychology. The models considered in this field combine elements of evolutionary game theory (solution concepts) and stochastic dynamic games (strategic frameworks). 

EBF is an innovative field of research that explores the financial markets as biological systems. In this framework agents have individual psychology which results in heterogeneity of types of behaviour. Evolutionary process is realized through the interaction between the investment strategies leading to redistribution of the market wealth. Survival is one of the key questions in the analysis of the market selection process. Theoretical results published in the area of EBF have been successfully employed in investment practices within the Swiss and German financial systems. The evidence of the practical impact of the research on EBF is provided by the investment company AllMountain Capital AG (Switzerland) and Deutsche Bank (Germany). 

Main results of my research address the following problems:

1) including the riskless asset into the market with short-lived assets;

2) allowing for short selling in the market with short-lived assets;

3) studying a market with short-lived assets from a game-theoretic perspective with the focus on the analysis of Nash equilibrium properties of survival portfolio rules and

4) allowing for short selling in the market with long-lived, dividend-paying assets. 

Key Terms:

  • Microeconomics
  • Mathematics
  • Mathematical Finance 
  • Evolutionary Finance
  • Evolutionary Portfolio Theory
  • Game Theory
  • Games of Survival
  • Stochastic Games
  • Random Dynamical Systems
  • Bounded Rationality 
  • Behavioural Diversity