Technology, Information Production, and Market Efficiency

37 Pages Posted: 9 Oct 2001

See all articles by Gene D'Avolio

Gene D'Avolio

Harvard University, Graduate School of Business Administration

Efi Gildor

Gildor Trading Inc.

Andrei Shleifer

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Date Written: September 2001

Abstract

A well functioning securities market relies on the availability of accurate information, a broad base of investors who can process this information, legal protection of these investors' rights and a liquid secondary market unencumbered by excessive transaction costs or constraints. When these conditions are satisfied, securities markets are likely to be broader and more efficient, with felicitous consequences for investment and resource allocation. This paper explores the effect of technological advances on these features of the market, emphasizing the incentives facing the producers of financial information.

Suggested Citation

D'Avolio, Gene M. and Gildor, Efi and Shleifer, Andrei, Technology, Information Production, and Market Efficiency (September 2001). Available at SSRN: https://ssrn.com/abstract=286597 or http://dx.doi.org/10.2139/ssrn.286597

Gene M. D'Avolio

Harvard University, Graduate School of Business Administration

Soldiers Field
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Efi Gildor

Gildor Trading Inc. ( email )

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Andrei Shleifer (Contact Author)

Harvard University - Department of Economics ( email )

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HOME PAGE: http://www.economics.harvard.edu/~ashleife/

National Bureau of Economic Research (NBER)

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European Corporate Governance Institute (ECGI)

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