Browsing by Subject "Market efficiency"

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Testing market imperfections via genetic programming
(2011) Jansen, Sebastian; Burghof, Hans-Peter
The thesis checks the validity of the efficient markets hypothesis focusing on stock markets. Technical trading rules are generated by using an evolutionary optimization algorithm (Genetic Programming) based on training samples. The trading rules are subsequently applied to data samples unknown to the algorithm beforehand. The benchmark strategy consists of a classic buy-and-hold strategy in the DAX and the Hang Seng. The trading rules generally fail at consistently beating the benchmark thus indicating that market efficiency holds.
Der Zusammenhang zwischen Preis und Qualität auf Konsumgütermärkten
Befunde, Interpretationen, Schlussfolgerungen
(2015) Imkamp, Heiner; Sousa-Poza, Alfonso
For more than 60 years, numerous studies have shown low price-quality correlations on consumer goods markets. The coefficients are mostly close to 0.2. That prices fail to function as valid indicators of product quality has often been interpreted as informational market failure. This dissertation, however, argues, that, according to the economic theory of price formation, prices are not an indicator of quality, but an indicator of scarcity. This allows the conclusion that workable consumer goods markets, at least as seen from the consumers point of view, should be characterized by low or even negative correlation coefficients rather than by strong positive coefficients.