Two of the main functions of financial markets are to discover equilibrium prices, thus providing useful information to the economy, and to enable investors to realize mutually beneficial trades. However, informational frictions and opportunistic behaviour can hinder the efficient functioning of markets.
The objective of the present research project is to study:
1) the consequences of these frictions,
2) how different market arrangements worsen or mitigate these problems,
3) which public policies could be put in place to improve the functioning of markets.
Project dates: 01/06/2012 – 31/05/2017