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Stock prices occasionally move in response to unverified rumors. I propose a cheap talk model in which a rumormonger's incentives to tell the truth depend on the interaction between her investment horizon and the information acquisition decisions of message-receiving investors. The model's key...
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points to an important trade-off in regulating the OTC market and protecting investors: Lowering regulatory requirements (e …
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requirements have higher market quality (higher liquidity and lower crash risk). Our analysis points to an important trade-off in …
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recent testing methodology to estimate the relative efficiency of discrete versus continuous trading regimes in the price …
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higher market quality (higher liquidity and lower crash risk). Our analysis points to an important trade-off in regulating …
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