Market Informational Inefficiency, Risk Aversion and Quantity Grid
نویسندگان
چکیده
منابع مشابه
Quantity leadership and social inefficiency
A game of simultaneous free entry and sequential output choices is analyzed. Firms enter simultaneously in stage 1 by paying a fixed cost, and they choose output levels sequentially in subsequent stages. At the subgame-perfect equilibrium of the game, the production level of a firm is decreasing with the order of the firm in the decision-making. The firm that is the last to choose output produc...
متن کاملInformational Inequity Aversion and Performance∗
In labor markets, some individuals have, or believe to have, less data on the determinants of success than others, e.g., due to differential access to technology or role models. We provide experimental evidence on how informational differences translate into performance differences in competitive environments. In a laboratory tournament setting, we varied subjects’ information about the potenti...
متن کاملRisk Aversion , Beliefs , and Prediction Market Equilibrium
Manski [2004] analyzes the relationship between the distribution of traders’ beliefs and the equilibrium price in a prediction market with risk neutral traders. He finds that there can be a substantial difference between the mean belief that an event will occur, and the price of an asset that pays one dollar if the event occurs and otherwise pays nothing. This result is puzzling, since these ma...
متن کاملInformational Cascades with Endogenous Prices: the Role of Risk Aversion
In this paper we show that long run market informational ine¢ ciency and informational cascades can easily happen when trades occur at market clearing prices. We consider a sequential trade model where: (i) the investorsset of actions is discrete; (ii) dealers and investors di¤er in risk aversion; (iii) investorsinformation is bounded. We show that informational cascade occurs as soon as trad...
متن کاملOptimal Market-Making with Risk Aversion
Risk management is the underlying paradigm necessary to mitigate the impact of adverse outcomes such as financial crises, energy shortages, oil disasters, global supply chain disruptions, and a myriad of other potentially catastrophic large-scale system failures. This seminar series serves as a platform to bring together diverse perspectives, problem definitions and solutions that transcend dis...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2003
ISSN: 1556-5068
DOI: 10.2139/ssrn.424300