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Common liquidity shocks and market collapse: Lessons from the market for perps

โœ Scribed by Chitru S. Fernando; Richard J. Herring; Avanidhar Subrahmanyam


Book ID
116615129
Publisher
Elsevier Science
Year
2008
Tongue
English
Weight
216 KB
Volume
32
Category
Article
ISSN
0378-4266

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This paper summarizes some recent research pertaining to laboratory markets, and then discusses some of the implications of this research for applied economics and policy. Three results are discussed: (a) in one-sided markets where sellers' post-prices price-tracking response to demand shocks is ver