contributed to higher asset prices through increased use of collateralisation, which allows risk-neutral investors to realise …, raising prices. More complex collateralised contracts, like CDOs, can increase prices further. In contrast, with disagreement … about mean payoffs, price bubbles arise without collateralisation, which may discipline prices as pessimists demand higher …

implications about the expected relationship between the preponderance of disposition investors in the market and stock volatility … fraction of ‘irrational’ investor trades in a stock increases, stock volatility, return and trading volume decrease. We further …