A price barrier is a price level at which a large number of investors either buy or sell securities. We analyze the dynamics of asset prices in an economy in which price barriers exist. Our analysis suggests that asset prices and volatility can exhibit jumps when the price barrier is reached....

In a variety of realistic scenarios, some investors trade infrequently rather than continuously, basing their buy or sell decisions on current price levels. A acirc;not;Sprice barrieracirc;not;? is a price level at which a large number of investors either buy or sell securities. We analyze the...

In a variety of realistic scenarios, some investors trade infrequently rather than continuously, basing their buy or sell decisions on current price levels. A quot;price barrierquot; is a price level at which a large number of investors either buy or sell securities. We analyze the dynamics of...