Price Discovery and Learning during the Preopening Period in the.pdf.pdf' (475.48 kB)
Price Discovery and Learning during the Preopening Period in the Paris Bourse
journal contribution
posted on 1985-06-01, 00:00 authored by Bruno Biais, Pierre Hillion, Chester SpattChester SpattBefore the opening of the Paris Bourse, traders place orders and
indicative prices are set. This offers a laboratory to study empirically
the taˆtonnement process through which markets discover
equilibrium prices. Since preopening orders can be revised or canceled
before the opening, indicative prices could be noise. We test
this against the hypothesis that preopening prices reflect learning.