Is Denial of the Possibility of Financial Asset Market Failure Responsible for an Economic Holocaust?

2009 ◽  
Author(s):  
Brendan McSweeney
Keyword(s):  
Market Failure ◽  
Asset Market ◽  
Financial Asset

scholarly journals Copy Trading

2020 ◽  
Vol 66 (12) ◽  
pp. 5608-5622 ◽  
Author(s):  
Jose Apesteguia ◽  
Jörg Oechssler ◽  
Simon Weidenholzer
Keyword(s):  
Social Networks ◽  
Decision Analysis ◽  
Financial Markets ◽  
Risk Taking ◽  
Asset Market ◽  
Financial Asset ◽  
To Receive ◽  
Excessive Risk Taking ◽  
Excessive Risk ◽  
Increase In Risk

Copy trading allows traders in social networks to receive information on the success of other agents in financial markets and to directly copy their trades. Internet platforms like eToro, ZuluTrade, and Tradeo have attracted millions of users in recent years. The present paper studies the implications of copy trading for the risk taking of investors. Implementing a novel experimental financial asset market, we show that providing information on the success of others leads to a significant increase in risk taking of subjects. This increase in risk taking is even larger when subjects are provided with the option to directly copy others. We conclude that copy trading leads to excessive risk taking. This paper was accepted by Axel Ockenfels, decision analysis.

scholarly journals ENDOGENOUS INEQUALITY OF NATIONS THROUGH FINANCIAL ASSET MARKET INTEGRATION

2010 ◽  
Vol 14 (3) ◽  
pp. 285-310 ◽  
Author(s):  
Volker Böhm ◽  
George Vachadze
Keyword(s):  
Steady State ◽  
Market Integration ◽  
Rational Expectations ◽  
Overlapping Generations ◽  
Absolute Risk ◽  
Sufficient Conditions ◽  
Asset Markets ◽  
Asset Market ◽  
Financial Asset ◽  
Long Run

The paper analyzes an endogenous mechanism leading perfectly symmetric economies to diverge in the long run after unifying their financial asset markets. The standard growth model with overlapping generations of consumers (OLG) is extended to include uncertainty and a financial asset. In the absence of an international asset market, the two autarkic economies converge to the same globally attracting steady state under rational expectations dynamics. When the two asset markets are unified internationally, additional asymmetric steady states appear, implying that the steady state with equal levels of capital becomes unstable, causing symmetry breaking. The paper derives general sufficient conditions for a saddle node bifurcation of the symmetric steady state. A numerical example shows that these effects occur, in particular when the production function and the function of absolute risk aversion are isoelastic.

Discontinuous Institutional Alternatives in the Context of Economy Deregulation

2004 ◽  
pp. 94-110 ◽  
Author(s):  
A. Shastitko
Keyword(s):  
Market Failure ◽  
Transaction Management ◽  
Market Failures ◽  
Relative Cost ◽  
State Participation

Various ways of state participation in the mechanisms of transaction management are considered in the article. Differences between compensation and elimination of the market failures are identified. Opportunities and risks of non-regulatory alternatives usage as a mean of market failure compensation are described. Based on classification of goods correlated to relative cost of their useful characteristics evaluation (search, experience, merit) questions of institutional alternatives in three areas (political, financial and commodity) are examined.

UK Television Policy and Regulation, 2000–10

2012 ◽  
Vol 9 (4) ◽  
pp. 521-547 ◽  
Author(s):  
Jonathan Hardy
Keyword(s):  
Public Service ◽  
Policy Making ◽  
Market Failure ◽  
Media Content ◽  
Media Ownership ◽  
Communications Policy ◽  
Policy Issues ◽  
Digital Services ◽  
Broadcasting Regulation ◽  
Structural Regulation

Between 2000 and 2010, new institutional arrangements were created for UK broadcasting regulation, built upon a radical rethinking of communications policy. This article examines key changes arising from Labour's media policy, the Communications Act 2003 and the work of Ofcom. It argues that changes within broadcasting were less radical than the accompanying rhetoric, and that contradictory tendencies set limits to dominant trends of marketisation and liberalisation. The article explores these tendencies by reviewing the key broadcasting policy issues of the decade including policies on the BBC, commercial public service and commercial broadcasting, spectrum and digital switchover, and new digital services. It assesses changes in the structural regulation of media ownership, the shift towards behavioural competition regulation, and the regulation of media content and commercial communications. In doing so, it explores policy rationales and arguments, and examines tensions and contradictions in the promotion of marketisation, the discourses of market failure, political interventions, and the professionalisation of policy-making.

THE EU SUGAR MARKET PROFILE AND ITS MAIN DRIVERS

2015 ◽  
Author(s):  
Lubos SMUTKA ◽  
Irena BENEŠOVÁ ◽  
Patrik ROVNÝ ◽  
Renata MATYSIK-PEJAS
Keyword(s):  
Market Failure ◽  
Current System ◽  
Quota System ◽  
Considerable Debate ◽  
Sugar Market ◽  
The Common ◽  
The One ◽  
Production Capacities ◽  
The Given ◽  
The Eu

Sugar is one of the most important elements in human nutrition. The Common Market Organisation for sugar has been a subject of considerable debate since its establishment in 1968. The European agricultural market has been criticized for its heavy regulations and subsidization. The sugar market is one of the most regulated ones; however, this will change radically in 2017 when the current system of production quotas will end. The current EU sugar market changed is structure during the last several decades. The significant number of companies left the market and EU internal sugar market became more concentrated. The aim of this paper is presentation characteristics of sugar market with respect to the supposed market failure – reduction in competition. The analysis also identifies the main drivers and determinants of the EU especially quota sugar market. In relation to paper’s aim the following results are important. The present conditions of the European sugar market have led to market failure when nearly 75 % (10 million tonnes) of the quota is controlled by five multinational companies only. These multinational alliances (especially German and French one) are also taking control over the production capacities of their subsidiaries. In most countries, this causes serious problems as the given quota is controlled by one or two producers only. This is a significant indicator of market imperfection. The quota system cannot overcome the problem of production quotas on the one hand and the demand on the other; furthermore, it also leads to economic inefficiency. The current EU sugar market is under the control of only Sudzucker, Nordzucker, Pfeifer and Langen, Tereos and ABF.

A study on the influence of financial crisis on the domestic asset market

2013 ◽  
Vol 27 (3) ◽  
pp. 335-353
Author(s):  
Kang, Won-Chul ◽  
kim, won-hee
Keyword(s):  
Financial Crisis ◽  
Asset Market
Sign in / Sign up

Export Citation Format

Share Document