Paving wall street: experimental economics and the quest for the perfect market
Langue : Anglais
Wall Street enters the laboratory to develop a new breed of stable and efficient "smart markets" that can better withstand the extremes of human behavior ". Events such as the bursting of the Internet bubble and the collapse of the California Power Exchange show that as we enter the twenty-first century we have yet to find a consistent and painless way to bring supply and demand into balance. This book is an engaging and accessible introduction to the cutting-edge field of experimental economics that explores how Adam Smith's "invisible hand" works and what can cause it to behave badly. The author, a pioneer in the field of experimental economics and a leading financial consultant, takes over fifty years of research from the top universities and relates it to the everyday operation of familiar markets. This volume provides the reader with a delightful discussion of the ideas that are shaping the future of the global economy.
Foreword by Vernon L. Smith.
Preface.
Acknowledgments.
Chronology of Major Events.
PART I: BUBBLES AND EXPERIMENTS.
1 Wind Tunnel Markets.
Step into the Wind Tunnel.
Our Road Map.
2 Bargain Hunting.
Capturing the Human Element.
Rationality and Induced Value at Your Corner Grocer.
Let's Make a Deal.
Games and Strategies.
It Came from Harvard.
3 A Tale of Two Smiths.
The Law of Supply and Demand.
The Groping Market.
New Market Rules.
Perfect Without Knowledge.
4 Bubbles in the Lab.
Cycling Through Time.
The Seasonal Shift.
Speculators Enter the Laboratory.
Behold the Bubble.
On the Origin of Bubbles.
5 Bubbles in the Wild.
Asset Valuation and Efficient Markets.
From Noise to Irrationality.
Breaking the Bank.
Bubbles: Rational or Irrational?
Potholes on Wall Street.
PART II: INSIDE MARKETS: OPTIONS, INFORMATION, AND LIQUIDITY.
6 Black Monday.
Peering into the Abyss.
The Quantitative Finance Revolution.
It's There Until You Need It.
Programmed to Trade.
7 All the World's an Option.
How Do You Value an Option?
The Formula for Options.
The Universal Nature of Options.
Options Rule on Wall Street.
Spreads and the Risk of Default.
Liquidity:The Ultimate Option.
8 The Invisible Hand Discovers Prices.
Price Impact and Market Manipulations.
Toward Instantaneous Price Discovery.
One Sided Auction Markets.
Vickery's Solution.
Deviant Auctions.
9 Sending Signals and Keeping Score.
Lemons Squeeze the Market Mechanism.
The Theory of Market Signaling.
Learning to Signal in the Laboratory.
Prices as Scorekeepers.
The Art of Indexing.
The Limits to Aggregation.
10 It All Comes Down to Money.
Money, Expectations, and Illusion.
The Emergence of Money.
Future Money.
PART III: GRIDLOCK AND THE ROAD TO SMART MARKETS.
11 The Market Is Tied Up in Knots.
Long Term Gridlock.
Arbitrage Has Its Limits.
Markets as Matchmakers.
Smart Enough to Weave a Basket.
12 Making Markets Intelligent.
Adding Baskets to the Market.
Self Arbitraging Markets.
Recombinant Securities Markets.
All or Nothing at All.
Breaking the Law of a Single Price.
13 The Smart Auction Block.
Bandwidth for Sale.
Location, Location, Location . . . and Synergy,Too.
Combinatorial Auctions: Optimization on the Fly.
NASA's Awesome Wind Tunnel.
Learning by Doing at the...
Preface.
Acknowledgments.
Chronology of Major Events.
PART I: BUBBLES AND EXPERIMENTS.
1 Wind Tunnel Markets.
Step into the Wind Tunnel.
Our Road Map.
2 Bargain Hunting.
Capturing the Human Element.
Rationality and Induced Value at Your Corner Grocer.
Let's Make a Deal.
Games and Strategies.
It Came from Harvard.
3 A Tale of Two Smiths.
The Law of Supply and Demand.
The Groping Market.
New Market Rules.
Perfect Without Knowledge.
4 Bubbles in the Lab.
Cycling Through Time.
The Seasonal Shift.
Speculators Enter the Laboratory.
Behold the Bubble.
On the Origin of Bubbles.
5 Bubbles in the Wild.
Asset Valuation and Efficient Markets.
From Noise to Irrationality.
Breaking the Bank.
Bubbles: Rational or Irrational?
Potholes on Wall Street.
PART II: INSIDE MARKETS: OPTIONS, INFORMATION, AND LIQUIDITY.
6 Black Monday.
Peering into the Abyss.
The Quantitative Finance Revolution.
It's There Until You Need It.
Programmed to Trade.
7 All the World's an Option.
How Do You Value an Option?
The Formula for Options.
The Universal Nature of Options.
Options Rule on Wall Street.
Spreads and the Risk of Default.
Liquidity:The Ultimate Option.
8 The Invisible Hand Discovers Prices.
Price Impact and Market Manipulations.
Toward Instantaneous Price Discovery.
One Sided Auction Markets.
Vickery's Solution.
Deviant Auctions.
9 Sending Signals and Keeping Score.
Lemons Squeeze the Market Mechanism.
The Theory of Market Signaling.
Learning to Signal in the Laboratory.
Prices as Scorekeepers.
The Art of Indexing.
The Limits to Aggregation.
10 It All Comes Down to Money.
Money, Expectations, and Illusion.
The Emergence of Money.
Future Money.
PART III: GRIDLOCK AND THE ROAD TO SMART MARKETS.
11 The Market Is Tied Up in Knots.
Long Term Gridlock.
Arbitrage Has Its Limits.
Markets as Matchmakers.
Smart Enough to Weave a Basket.
12 Making Markets Intelligent.
Adding Baskets to the Market.
Self Arbitraging Markets.
Recombinant Securities Markets.
All or Nothing at All.
Breaking the Law of a Single Price.
13 The Smart Auction Block.
Bandwidth for Sale.
Location, Location, Location . . . and Synergy,Too.
Combinatorial Auctions: Optimization on the Fly.
NASA's Awesome Wind Tunnel.
Learning by Doing at the...
Date de parution : 02-2002
Ouvrage de 336 p.
23.4x15.9 cm
Thèmes de Paving wall street: experimental economics and the quest... :
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