For a market to be viable, participants must be heterogeneous. Traditional asymmetric information models achieve this by including informed, uninformed, and noise traders. We model heterogeneity differently by relaxing the assumption that identically informed agents form homogeneous...

This study explores the significance of production technology and other parameters on the employment of inputs and hedging. The paper establishes an explicit relationship between the risk as well as prices parameters and the derived demand, production and hedging. The authors find that the...

Purpose – Empirical researchers should recognize that opening and closing prices are not simple reflections of underlying fundamental values, as studies of stock price behavior have documented a U‐shaped intra‐day volatility pattern that is a manifestation of noise. While implicit...