Add to ORKGWe investigate the possibility that in the foreign exchange market uninformed speculators find it convenient to trade on noise in order to gain an informational advantage they can exploit in future. In a two-period model, we analyze the trade-off between the cost of the “informa-tional investment ” and the profits this brings about, studying the optimal manipulation strategy under different hypotheses on the activity of market participants. Our results give a possible explanation for the presence of noise trading in the foreign exchange market. JEL Classification Numbers: D82, G14 and G15
This paper tests a smart money-noise trader model directly by comparing its predictions with the beh...
We study the extent to which, in a laboratory \u85nancial market, noise trading can stem from subjec...
Does speculation facilitate price discovery or instability? If it is price discovery, it is benefici...
We use a laboratory market to investigate the behavior of traders who lack informational advantages ...
In this paper we analyze the effectiveness of sterilized interventions in the foreign exchange marke...
Efficient market models cannot explain the high level of trading in financial markets in terms of as...
The study makes three major contributions towards understanding the role of asymmetric information a...
In this paper we analyze the effectiveness of sterilized interventions in the foreign exchange marke...
This paper suggests that normal speculative activity could be a source of random-walk exchange rate ...
In this research we investigate the behavior of noise traders and their impact on the market. We do ...
This paper studies whether there exists private information in the foreign exchange market, and whet...
In this research we investigate the behavior of noise traders and their impact on the market. We do ...
Theoretical noise trader models suggest that uninformed traders can impact market prices. However, t...
The single auction equilibrium of Kyle’s (1985) is studied, in which noise traders may be partially ...
This dissertation investigates the long-run effects of noise traders in financial markets. Noise tr...
This paper tests a smart money-noise trader model directly by comparing its predictions with the beh...
We study the extent to which, in a laboratory \u85nancial market, noise trading can stem from subjec...
Does speculation facilitate price discovery or instability? If it is price discovery, it is benefici...
We use a laboratory market to investigate the behavior of traders who lack informational advantages ...
In this paper we analyze the effectiveness of sterilized interventions in the foreign exchange marke...
Efficient market models cannot explain the high level of trading in financial markets in terms of as...
The study makes three major contributions towards understanding the role of asymmetric information a...
In this paper we analyze the effectiveness of sterilized interventions in the foreign exchange marke...
This paper suggests that normal speculative activity could be a source of random-walk exchange rate ...
In this research we investigate the behavior of noise traders and their impact on the market. We do ...
This paper studies whether there exists private information in the foreign exchange market, and whet...
In this research we investigate the behavior of noise traders and their impact on the market. We do ...
Theoretical noise trader models suggest that uninformed traders can impact market prices. However, t...
The single auction equilibrium of Kyle’s (1985) is studied, in which noise traders may be partially ...
This dissertation investigates the long-run effects of noise traders in financial markets. Noise tr...
This paper tests a smart money-noise trader model directly by comparing its predictions with the beh...
We study the extent to which, in a laboratory \u85nancial market, noise trading can stem from subjec...
Does speculation facilitate price discovery or instability? If it is price discovery, it is benefici...