We study options market participants’ trading behavior before and after the options multiplier increases. After the options multiplier increases, the options market becomes more efficient. By analyzing the high-frequency microstructure dataset, we show that local retail and local institutional...

We investigate the feature of housing markets under adaptive and heterogeneous expectations. Model agents have finite horizons and borrowings are constrained by the collateral value of housing stock. Our model shows that expectation-driven house price dynamics constantly change the direction of...

A hedge fund's capital structure is fragile because uninformed fund investors are highly loss sensitive and easily withdraw capital in response to bad news. Hedge fund managers, sharing common investors and interacting with each other through market price, sensitively react to other funds'...