Finance at the speed of light: Is faster trading always better?

Marius Zoican 20 September 2014

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Few activities embraced the computer age so actively as trading. Loud and hectic pits have been progressively replaced by silent computer server rooms. Transactions are no less dynamic for it, however. A London-based trader can buy stocks in Frankfurt within just 2.21 milliseconds.1 Light needs 2.12 milliseconds to travel the same distance. Welcome to the age of algorithmic and high-frequency trading!

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Topics:  Financial markets

Tags:  high-frequency trading, algorithmic trading, technology, liquidity, spreads, price discovery, adverse selection, exchanges, competition-stability trade-off

How retail drug markets in poor countries develop

Daniel Bennett, Wes Yin 14 August 2014

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Millions of people die each year from infectious diseases like malaria, TB, HIV, and diarrhoea, many of which have drug therapies. We need effective medicine to confront the alarming burden of infectious disease in the developing world. However, many of the drugs for sale in developing countries are of poor quality. Counterfeiters sell ineffective products that imitate the appearance of established brands, while small manufacturers make and distribute substandard versions of common generics.

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Topics:  Development Health economics Industrial organisation

Tags:  competition, pharmaceuticals, India, quality, asymmetric information, economies of scale, healthcare, adverse selection, drugs, medicine, market for lemons, chains

Selling assets to raise corporate capital

Alex Edmans, William Mann 15 February 2014

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Asset sales are a means of financing

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Topics:  Financial markets Frontiers of economic research

Tags:  asymmetric information, capital, adverse selection, information asymmetry, lemons problem, asset sales, financing

Can Market Failure Cause Political Failure?

Maitreesh Ghatak, Madhav Aney, Massimo Morelli,

Date Published

Thu, 08/18/2011

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Institutions and economics Politics and economics Poverty and income inequality

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market failure, occupational choice, adverse selection, asset liquidation, political failure and property rights