Do regulations work? A comprehensive analysis of price limits and trading restrictions in experimental asset markets with deterministic and stochastic fundamental values
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DOI: 10.1016/j.jebo.2020.07.012
Abstract: Abstract We examine how traders react to two prominent stock market regulations. Under a constant fundamental value (FV) process, price limits and trading restrictions significantly reduce the price level and mispricing size when traders are… read more here.
Keywords: price limits; regulations work; trading restrictions; price ... See more keywords