The purpose of this research is to further our understanding of the extent to which gains from trade can be reaped in financial markets. Designing the organization of financial markets implies defining the microstructure of the market, i.e., the trading and aggregation rules. Rules are often imperfect and give rise to various frictions, which might interplay with the beliefs, the strategic interactions, or the cognitive biases of market participants (e.g., investors, managers, or financial intermediaries). My objective is to analyze the potential impact of these frictions on the prices, and thus on market quality and welfare, possibly to highlight original policy implications. My project is at the crossing of fields, namely, market microstructure, asset pricing, behavioural finance, and corporate finance. To achieve these objectives, my scientific approach is firmly grounded on theoretical, experimental, and empirical bases.
Project : 01/10/2016 – 31/03/2021