Disagreement-Based Trading and Speculation: Implications for Financial Regulation and Economic Theory

Lynn Stout's paper develops an insightful legal-economic analysis of speculative trading. From one hand, the paper discusses the legal-economic framework of speculation and its recent transformation, making reference to the case of derivatives markets crash (and related financial crisis) of 2007. From another hand, the paper foreshadows a thought-provoking economic model of trade (and speculation) based on disagreement, advocating further developments that take into account market manipulation and conflict of interest, whilst relaxing alleged assumptions (and beliefs) on universal fundamental value and perfect forecasting.

MoreLess

Year of publication:	2011
Authors:	Biondi, Yuri
Institutions:	HAL
Subject:	economic theory \| financial regulation \| speculation \| hedging \| heterogeneous beliefs

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	Post-Print.
Type of publication:	Book / Working Paper
Language:	English
Notes:	View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00561904/en/ Published, Accounting, Economics, and Law, 2011, 1, 1, 1-6
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008835378