7/11/2016

The Department of Banking and Financial Management announces the upcoming seminar with Prof. Ulf Axelson, LSE

Prof. Ulf Axelson will present:

Informational Black Holes in Financial Markets

ABSTRACT:

We study how well primary financial markets allocate capital when information about investment opportunities is dispersed across market participants. Paradoxically, the fact that information is valuable for real investment decisions destroys the efficiency of the market. To add to the paradox, as the number of market participants with useful information increases a growing share of them fall into an “informational black hole”, making markets even less efficient. Contrary to the predictions of standard theory, social surplus and the revenues of an entrepreneur seeking financing can be decreasing in the size of the market, and collusion among investors may enhance efficiency.

http://www.lse.ac.uk/fmg/workingPapers/discussionPapers/fmgdps/DP754.pdf

Time and Place

November 10, 2016

Time: 16.15-18.00

Place: Room 013

More upcoming Seminars 2016:

November 24, 2016

Alexander Hillert, University of Mannheim

December 8, 2016

Sebastian Pfeil, University of Bonn

ALL FINANCE SEMINARS