This paper investigates the intradaily operational efficiency of the U. S. foreign exchange market by conducting computer simulation experiments with market structure (the numbers of market—makers, brokers and customers). The results indicate significant operational inefficiencies which can be explained by temporary inventory imbalances inherent in a decentralized market. The results also sugge...

Using point-in-time accounting data, we estimate monthly fair values of 25,000+ stocks from 36 countries. A trading strategy based on deviations value earns significant risk-adjusted returns (“alpha”) in most regions, especially Asia-Pacific, that are unrelated to known anomalies. The strategy's 40–70 basis point per month alpha difference between emerging and developed markets contrast with pr...

Allocative inefficiencies in online auction markets can result in the loss of revenues for sellers. It can also cause frustration for buyers who fail to win an item despite placing bids higher than other winners. The main contention of this work is that allocative inefficiencies present arbitrage opportunities, though not strictly in the traditional financial market sense, where risk-free profi...

Online market places have an unprecedented power of bringing together a large number of buyers and sellers and aggregating information. Despite its benefits, this scale of aggregation of private information may bring about adverse effects that can cause inefficiencies, which can be ignored by conventional analysis. In this paper, I present a strategic model of a large industrial market with asy...

The recent low CO2 prices in the European Union Emission Trading Scheme (EU ETS) have triggered a discussion whether the EU ETS needs to be adjusted. We study the effects of CO2 price floors and a price ceiling on the dynamic investment pathway of two interlinked electricity markets (loosely based on Great Britain, which already has introduced a price floor, and on Central Western Europe). Usin...

We investigate Wireless LAN hot-spots based on the IEEE 802.11b protocol, considering technical and economic issues of the Radio Resource Allocation. Firstly, we discuss how to model the trade-off between perceived QoS and paid price in the users’ request, so as to represent the users as choosing the most satisfactory allocation, determined by service requirements and willingness to pay. After ...

An interesting question in assessing value relevance of accounting variables is whether measures of value relevance are materially affected by market inefficiencies. We explore this question in two steps: First, we analytically examine the impact of market inefficiencies on the estimation of coefficients in value relevance regressions and derive a procedure that corrects potential biases caused...

With prices skyrocketing for housing, especially in the San Francisco Bay Area, there is much talk about a housing bubble. However, the rapid price increases could also be due to changes in fundamentals: implicit rents, interest rates, and property and income tax rates. I use sales and implicit rental data from 1983 to 2005 for the City of San Francisco that is available through national accoun...

Relative price variability leads to inefficiencies in the allocation of resources that reduce real income (Fischer, 1981). Given the costs associated with relative price variability, the relation between inflation and relative price variability has been extensively researched and a positive relation between the two is documented for many countries and for varying time periods. Investigating the...

The substantial subsidizing of energy prices over the years has led to high energy consumption, inefficiencies, fiscal pressures, and environmental problems in Iran. To address the increasing socio-economic problems associated with the energy subsidies, the government embarked on an aggressive energy price reform through which energy subsidies were removed and cash handouts were given to all ho...