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Institutional Investor | Vol.3, Issue.1 | | Pages 56-66

Institutional Investor

Divergent Expectations.

Davis, Paul L. Pagano, Michael S. Schwartz, Robert A.  
Abstract

The article examines the idea of divergent expectations as it effects trading and market structure matter. Despite structural change in equity markets around the globe, many questions about market structure and market structure regulation remain unanswered. Regulators have paid scant attention to the accuracy of price discovery and the completeness of quantity discovery. These two issues are of major importance in a divergent expectations environment but in a homogeneous expectations environment do not have particular prominence.

Original Text (This is the original text for your reference.)

Divergent Expectations.

The article examines the idea of divergent expectations as it effects trading and market structure matter. Despite structural change in equity markets around the globe, many questions about market structure and market structure regulation remain unanswered. Regulators have paid scant attention to the accuracy of price discovery and the completeness of quantity discovery. These two issues are of major importance in a divergent expectations environment but in a homogeneous expectations environment do not have particular prominence.

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Davis, Paul L. Pagano, Michael S. Schwartz, Robert A.,.Divergent Expectations.. 3 (1),56-66.

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