Relative price efficiency, technical change, and scale economies for large commercial banks

1990 ◽  
Vol 2 (3) ◽  
pp. 281-298 ◽  
Author(s):  
Douglas D. Evanoff ◽  
Philip R. Israilevich ◽  
Randall C. Merris
Keyword(s):  
Technical Change ◽  
Commercial Banks ◽  
Scale Economies ◽  
Relative Price ◽  
Price Efficiency

AN EXAMINATION OF PREDICTION MARKET EFFICIENCY: NBA CONTRACTS ON TRADESPORTS

2012 ◽  
Vol 3 (2) ◽  
pp. 65-77
Author(s):  
Richard Borghesi
Keyword(s):  
Market Efficiency ◽  
Theoretical Work ◽  
Relative Price ◽  
Event Data ◽  
Prediction Market ◽  
Price Efficiency ◽  
The Absolute ◽  
Fundamental Values ◽  
Vaughan Williams

In this paper I examine the absolute and relative price efficiency of NBA options listed on Tradesports.com.  I find that contracts within specific price bands are misvalued, but also demonstrate that this market is more efficient than is the market for NFL options.  Specifically, I show that contracts priced around $25 win (expire at $100) at a rate less than expected, while those priced around $75 win at a rate greater than expected.  The magnitudes of these deviations between prices and fundamental values are less than those in the NFL market.  Also, while prior theoretical work predicts that low-priced contracts should be overpriced, I instead find that NBA contracts priced near $2.50 win more frequently than expected.I thank Rob Dougherty and Brijesh Patel for assistance with the NBA event data, and Leighton Vaughan Williams for meaningful suggestions throughout.  Any errors are strictly my own.

scholarly journals Scale Economies, Scope Economies, and Technical Change in Federal Reserve Payment Processing

2002 ◽  
Vol 2002 (57) ◽  
pp. 1-25
Author(s):  
Robert M. Adams ◽  
◽  
Paul W. Bauer ◽  
Robin Sickles
Keyword(s):  
Federal Reserve ◽  
Technical Change ◽  
Scale Economies ◽  
Scope Economies

The Equilibrium Consequences of Indexing

2021 ◽  
Author(s):  
Philip Bond ◽  
Diego García
Keyword(s):  
Financial Markets ◽  
Rational Expectations ◽  
Market Timing ◽  
Relative Price ◽  
Stock Selection ◽  
Price Efficiency ◽  
Benchmark Model ◽  
Informed Traders

Abstract We develop a benchmark model to study the equilibrium consequences of indexing in a standard rational expectations setting. Individuals incur costs to participate in financial markets, and these costs are lower for individuals who restrict themselves to indexing. A decline in indexing costs directly increases the prevalence of indexing, thereby reducing the price efficiency of the index and augmenting relative price efficiency. In equilibrium, these changes in price efficiency in turn further increase indexing, and raise the welfare of uninformed traders. For well-informed traders, the share of trading gains stemming from market timing increases relative to stock selection trades.

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