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We unite investment by speculators and tech-savvy investors with a heterogeneous agent model.While speculators seek to profit from extrapolating the price trends, tech-savvy investors trade based on the prospective value of Bitcoin, which is a function of factors that capture the market demand...
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less prone to extreme swings in value. Pricing of innovation futures of publicly traded firms induces speculation on … innovation futures of said firms. The formal theoretical model demonstrates that speculation on innovation futures does not … coincide with either of speculation that derives from heterogeneity of information (noise), or speculation that derives from …
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A recent criticism of competition policy is that antitrust authorities shouldn't focus their concern on prices, since the welfare losses of prices are trivial compared to longer run innovation effects. At minimum, there's a problematic trade-off between so-called static price and dynamic...
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Crowd-funded markets have recently emerged as a novel source of capital for entrepreneurs. As the economic potential of these markets is now being realized, they are beginning to go mainstream, a trend reflected by the explicit attention crowdfunding has received in the American Jobs Act as a...
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We analyze 7.7 million patents via textual analysis to develop a novel patent-to-patent measure of innovation similarity among firms. With this measure, we investigate whether stock price movements reveal information about firms' technological connectedness. We find that investors impound...
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