Maybe so: Market-wide trading halts, also called circuit breakers, have been widely adopted as part of the stock market architecture, in the hope of stabilizing the market during dramatic price declines. We develop an intertemporal equilibrium model to examine how circuit breakers impact market behavior and welfare. We show that a circuit breaker tends to […]

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Comments In reply to BC. Do we have a theory of irrational investors? by Dismalist * “We show that a circuit breaker tends to lower the overall ... by BC * In reply to gardel. I.e. the breaker trips and the house goes ... by Rahul * In reply to gardel. The idea is to examine whether the ... by BC * In reply to Jonathan Vause. “Risk sharing” refers to the ... by BC * Plus 8 more... Related Stories More on the Merger Guidelines * Scrap AMC/KYC Laws * Why aren’t Barbie tickets more expensive?