Thursday, April 12, 2007

Market effects

Markets, by their very existence, seem to create their own effects. Without markets, there are individual transactions between buyers and sellers. With markets, there are 'market prices' against which other prices are compared. There are speculators, futures, derivatives, traders, arbitragers, etc. Has there ever been a study of market effects, the kinds of phenomena that always seems to occur once a market is created?

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