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Noise Traders

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  • James Dow
  • Gary Gorton

Abstract

Noise traders are agents whose theoretical existence has been hypothesized as a way of solving certain fundamental problems in Financial Economics. We briefly review the literature on noise traders. The is an entry for The New Palgrave: A Dictionary of Economics, 2nd Edition (Palgrave Macmillan: New York), edited by Steven N. Durlauf and Lawrence E. Blume, forthcoming in 2008.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12256.

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Date of creation: May 2006
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Handle: RePEc:nbr:nberwo:12256

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References

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  1. James Dow & Gary Gorton, 1993. "Profitable Informed Trading in a Simple General Equilibrium Model of Asset Pricing," NBER Working Papers 4315, National Bureau of Economic Research, Inc.
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  3. Shleifer, Andrei & Summers, Lawrence H, 1990. "The Noise Trader Approach to Finance," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 4(2), pages 19-33, Spring.
  4. James Dow & Gary Gorton, 1994. "Noise Trading, Delegated Portfolio Management, and Economic Welfare," Center for Financial Institutions Working Papers, Wharton School Center for Financial Institutions, University of Pennsylvania 95-10, Wharton School Center for Financial Institutions, University of Pennsylvania.
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  33. Hellwig, Martin F., 1980. "On the aggregation of information in competitive markets," Journal of Economic Theory, Elsevier, Elsevier, vol. 22(3), pages 477-498, June.
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Cited by:
  1. Hemmelgarn, Thomas & Nicodeme, Gaetan, 2010. "The 2008 Financial Crisis and Taxation Policy," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7666, C.E.P.R. Discussion Papers.
  2. Gurbachan Singh, . "Lacunae in Financial Regulatory Framework Vis-?-Vis Financial Repression," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India 09-10, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
  3. Aase, Knut K. & Bjuland, Terje & Øksendal, Bernt, 2011. "Insider trading with partially informed traders," Discussion Papers, Department of Business and Management Science, Norwegian School of Economics 2011/21, Department of Business and Management Science, Norwegian School of Economics.

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