Regulating competition in stock markets : antitrust measures to promote fairness and transparency through investor protection and crisis prevention

366 Pages·2012·2.7 MB·English

by  Wang

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Regulating
Competition in
Stock Markets
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Regulating
Competition in
Stock Markets
Antitrust Measures to Promote
Fairness and Transparency
through Investor Protection
and Crisis Prevention
LAWRENCE R. KLEIN
VIKTORIA DALKO
MICHAEL H. WANG
EDITORS
John Wiley & Sons, Inc.
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Copyright#2012byXinYan,LawrenceR.Klein,ViktoriaDalko,FerenceGyuresany,
MichaelH.Wang,ChristineHuang,andM.HarveyBrenner.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData:
Regulatingcompetitioninstockmarkets:antitrustmeasurestopromotefairnessand
transparencythroughinvestorprotectionandcrisisprevention/LawrenceR.Klein,Viktoria
Dalko,andMichaelH.Wang,editors.
p.cm.–(Wileyfinanceseries)
Includesbibliographicalreferencesandindex.
ISBN978-1-118-09481-5(cloth);978-1-118-22344-4(ebk);978-1-118-23686-4(ebk);
978-1-118-26186-6(ebk)
1. Stockexchanges–Statesupervision. 2. Stockexchanges–Governmentpolicy.
3. Financialcrises. 4. Competition. I. Klein,LawrenceRobert. II. Dalko,Viktoria.
III. Wang,MichaelH.
HG4551.R3842012
332.6402–dc23
2011046012
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
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ToOurInspiringTeachers
LawrenceR.Klein,ViktoriaDalko,andMichaelH.Wang
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Contents
Foreword xiii
Introduction xix
Acknowledgments xxvii
PART1
Happiness,Health,andLongevityduringthe2008
GlobalFinancialCrisis
CHAPTER1
DoestheRecentFinancialCrisisImpactHealthandHappiness? 3
XinYan,LawrenceR.Klein,ViktoriaDalko,FerencGyurcs(cid:1)any,
MichaelH.Wang,andChristineHuang
ConceptsofHappiness 4
TheHistoryofModelingHealthandFinancialCrisis 5
OurThreeObjectives 9
OurFinancialCrisis–ImpactModel 12
Results 16
FinancialCrisisasaMajorInternationalTraumaticEvent 21
CanWeJustWaitfortheNextFinancialCrisis? 24
Notes 25
CHAPTER2
ProfoundUnhappinessintheInternationalRecession:
TheCaseofSuicideinIndustrializedCountries 27
M.HarveyBrenner
Background 29
TwoConceptsofHappiness 30
APsychologicalViewpoint 33
Unhappiness,Hopelessness,andDepression 35
vii
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viii CONTENTS
Hypothesis:HappinessasAccomplishmentPredicts
HappinessasPleasure 36
Analysis 39
Conclusions 41
PART2
ImperfectCompetitionandAntitrustRegulations
intheStockMarkets
CHAPTER3
PreventingStockMarketCrises(I):RegulatingShareholding
Concentration 47
XinYan,LawrenceR.Klein,ViktoriaDalko,
FerencGyurcs(cid:1)any,andMichaelH.Wang
IsPerfectCompetitionPossibleintheStockMarket? 48
Concentration,Manipulation,andMonopoly 49
CanStockMarketsStillBeManipulated? 51
TheoreticalLiteratureonMarketManipulation 65
WeChoosetheAccumulation-Lift-Distribution
SchemetoStudy 68
ManipulativeObjectiveofEachStageoftheALDScheme 70
AreMonopolisticPracticesInvolvedintheALDScheme? 73
AntitrustAgainstALDManipulation 74
ExistingApproachandOurProposaltoRegulateMarket
Manipulation 75
RegulatoryProposal:AGenericRecommendation 76
BenefitsofRegulatingConcentration 77
ConcludingRemarksandFutureResearch 79
Notes 80
CHAPTER4
PreventingStockMarketCrises(II): Regulating
Trade-BasedPrice-Lifting 83
XinYan,LawrenceR.Klein,ViktoriaDalko,
FerencGyurcs(cid:1)any,andMichaelH.Wang
HowIsLargePriceImpactbyOtherInvestorsInduced? 84
EmpiricalResearchonVolume-BasedPriceImpact 84
TheSEBIProsecutionCases 87
TheManipulationTacticsUsedinPriceLifting 89
AnatomyofanInvestor’sTradesinaStockduringa
TradingDay 104