Q: What do rain, baseball, exchange rates, efficient markets, and interest rates have in common?
A: They're all in this piece by Mike Moffatt (economics doctoral student at the University of Western Ontario) titled How Markets Use Information To Set Prices (note: the example begins about halfway down the page). It gives a very nice explanation of the process by which market prices adjust to new information.
Moffatt provides an extended example of the price-setting process using the recent Tradesports contract for the "American League Wins The All-Star Game". He traces the price changes in the contract as the All-Star game progressed. At the end of the example, he even discusses how the contract for "The Yankees Win The World Series" went up following the American League All-Star win.
Once you're done reading the piece, go to the top of the page and click on the "economics" link. Moffatt has a number of pieces on various economics topics, like "What Is The Demand For Money" and "A Beginner's Guide To Economic Indicators". Browse around - there's lots of good stuff there, and it's all well written with the layman in mind.
1 comment:
Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $250, 000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $250, 000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius, via email:(urgentloan22@gmail.com) Whats App +91-8929509036 Thank you.
Post a Comment