Frictionless market

Frictionless market

Ideal trading environment that imposes no costs or restraints on transactions.

Market Efficiency

The extent to which the price of an asset reflects all information available. Economists disagree on how efficient markets are. Followers of the efficient markets theory hold that the market efficiently deals with all information on a given security and reflects it in the price immediately, and that technical analysis, fundamental analysis, and/or any speculative investing based on those methods are useless. On the other hand, the primary observation of behavioral economics holds that investors (and people in general) make decisions on imprecise impressions and beliefs, rather than rational analysis, rendering markets somewhat inefficient to the extent that they are affected by people.
References in periodicals archive ?
Tokenise will enable issuers to tokenise traditional and new asset classes utilising blockchain technology, providing streamlined processes and frictionless market access for issuers and investors.
The system is being built to enable issuers to tokenise securities, providing streamlined processes and frictionless market access for issuers and investors.
* Advise the board to take a hard look at the company's value chain and its sustainability by analyzing which parts would need to change as blockchain propels a transition to a frictionless market.
Henry Cao, University of North Carolina, and Hui Ou-Yang, Duke University, "Bubbles and Panics in a Frictionless Market with Heterogeneous Expectations"
On the empirical level, a review of the literature reveals that the frictionless market assumption is not a realistic representation of how farmland is actually traded.
In a frictionless market, the individual would be indifferent between a mortality swap and a bank deposit.
In a frictionless market all economic agents have the same access to information.
In a frictionless market, the assumption of no arbitrage is essentially equivalent to the existence of a stochastic discount factor [m.sub.t] such that the price process [p.sub.t] of any security with dividend process [d.sub.t] satisfies
Solvable and frictionless markets are populated by rational agents, which are then subjected to perturbations in an effort to recover economic realism.
Schaefer, 1984, "Continuous Price Processes in Frictionless Markets Have Infinite Variation", Journal of Business, 57:353-365
There is much human agency in Rothenberg's "frictionless markets" and the "rational calculations aimed at maximizing profits" of her subjects are as social as Bruegel's "relational considerations." After all, rational decisions in small-scale economic relations usually take place between or among socially alert participants.
These findings are driven by how bidders self-select across markets: Better-informed bidders select frictional markets while uninformed, pessimistic bidders select the safety of frictionless markets. These findings suggest a novel mechanism through which market imperfections in one market can have widespread effects across all linked markets.