Secrets of Finances and Payday Loans

In the rest of this blog three models will be outlined in which the choice between limit and market orders is the key element of traders’ optimization strategies. The model by Parlour (1998) concentrates on the time priority rule, which governs limit order books, and shows how the choice between market and limit orders depends [...]

From the industry structure it becomes obvious that the average credit quality of the issuers in the US investment grade market is lower than in the Euro corporate bond market. The current rating of the Euro market is A, whereas it is only A_ in the US market. Over the last 5 years this differential [...]

Tversky and Kahneman  and Shiller  argue that the assumption of rational, utility-maximizing behavior of investors is frequently violated in real life. They also show that these anomalies can be predicted and that they result from the use of simple heuristics to facilitate the process of decision-making. Sophisticated investors can benefit from this fact if they [...]