Hans-Michael Geiger- Informational Efficiency in Speculative Markets- a Theoretical Investigation : : Informational Efficiency in Speculative Markets.

• Superior document: Allokation im marktwirtschaftlichen System.
• Author: Geiger, Hans-Michael.
• Place / Publishing House: Frankfurt am Main : : Peter Lang GmbH, Internationaler Verlag der Wissenschaften,, 1989.; ©1989.
• Year of Publication: 1989
• Edition: First edition.
• Language: English
• Series: Allokation im marktwirtschaftlichen System.
• Physical Description: 1 online resource (238 pages)

The purpose of this work is to provide a critical presentation and some extensions of two perspectives of informational efficiency: On the one hand the neoclassical perspective or «arithmomorphic approach» explains efficiency in terms of a concept mainly based on an explicit economic theory. On the...

Table of Contents

• Cover
• PREFACE
• INTRODUCTION
• Chapter I The Fundamental Issue: Efficiency in Market Economies
• 1 The Separability of Market Systems into an Allocation System and an Information System
• 1.1 The Allocation System
• 1.1.1 PARETO's Paradigm
• 1.1.2 Extension: Market Costs
• 1.1.2.1 Transaction Costs
• 1.1.2.2 Coordination Costs
• 1.1.2.3 Transaction Costs versus Coordination Costs
• 1.1.3 Factor Earnings
• 1.1.3.1 Input Costs
• 1.1.3.2 Managerial Reward
• 1.2 The Information System
• 1.2.1 The Concept of an Information System
• 1.2.2 Entrepreneurial Activity and Managerial Performance
• 1.2.2.1 The Mode of Interaction
• 1.2.2.2 Entrepreneurial Profit
• 1.2.2.3 Structures of Organization and Efficiency
• 1.2.3 The Process of Diffusion of Information
• 1.2.3.1 Profit Erosion as an Indication of Diffusion of Information
• 1.2.3.2 A Simple Model of Profit Erosion
• 1.2.4 Allocation versus Information Processes
• 1.2.5 Possession versus Property
• 2 The Concept of Allocational Efficiency and Informational Efficiency
• 2.1 Efficiency and Rationality in Economic Science
• 2.2 The Concept of Allocational Efficiency
• 2.3 The Concept of Informational Efficiency
• 3 An Efficiency-Preference Function
• Chapter II The Empirical Reference System: Futures Markets
• 1 Definition and Institutional Setup
• 2 Transaction Possibilities with Particular Reference to Conflicting Theories of Hedging
• 2.1 Arbitrage
• 2.2 Hedging
• 2.2.1 Hedging for Risk-Shifting
• 2.2.2 Hedging for Profit-Making
• 2.3 Speculation
• 2.4 Spreading
• 3 Economic Functions of Futures Markets
• 3.1 Microeconomic Functions
• 3.2 Macroeconomic Functions
• 4 Institutional Properties of Futures Markets as an Aid to Theoretical Analysis
• Chapter III The 'Neoclassical' Perspective of Informational Efficiency
• 1 Introductory Notes.
• 2 The Arithmomorphic Approach
• 2.1 Presentation of the Basic Idea
• 2.2 Expected Return Models
• 2.3 Statistical Background
• 2.4 A FAMA-Model of an Informational Efficient Market System
• 2.4.1 Presentation of a FAMA-Model of an Informational Efficient Market System
• 2.4.2 Tests of Informational Efficiency
• 2.4.3 The Problem of Joint Tests
• 2.5 Limitations and Criticism of the Arithmomorphic Approach
• Chapter IV An 'Austrian' Perspective of Informational Efficiency
• 1 Introductory Notes
• 2 An 'Austrian' Perspective
• 2.1 Hedging versus Speculation
• 2.2 Information Processes
• 2.3 Divergent Expectations and Speculative Prices
• 2.3.1 The Idea of Expectations
• 2.3.2 Consensus Expectations versus Divergent Expectations
• 2.3.3 The 'Unquiet Market'
• 2.3.4 The Principle of False-Price-Trading
• 2.3.5 Speculative Prices versus Forecast Prices
• 2.4 Monopoly and Profit
• 2.4.1 The Notion of Friction
• 2.4.2 Monopoly
• 2.4.3 Market Efficiency.