An Inherent Instability of Efficient Markets
نویسندگان
چکیده
منابع مشابه
An Inherent Instability of Efficient Markets
Speculative markets are often described as "informationally efficient" such that predictable price changes are eliminated by traders exploiting them, leaving only residual unpredictable fluctuations. This classical view of markets operating close to an equilibrium is challenged by extreme price fluctuations which occur far more frequently than can be accounted for by external news. Here we show...
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چکیده ندارد.
Instability of Centralized Markets∗
Centralized markets reduce the costs of search for buyers and sellers. Their ‘thickness’ increases the chance of order execution at competitive prices. In spite of the incentives to consolidate, some markets, securities markets and online advertising being the most notable, are fragmented into multiple trading venues. We argue that fragmentation is an inevitable feature of any centralized marke...
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Recent developments in the global liberalization of equity and currency markets, coupled to advances in trading technologies, are making markets increasingly interdependent. This increased fluidity raises questions about the stability of the international financial system. In this paper, we show that as couplings between stable markets grow, the likelihood of instabilities is increased, leading...
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ژورنال
عنوان ژورنال: Scientific Reports
سال: 2013
ISSN: 2045-2322
DOI: 10.1038/srep02784