Transacting Without Pricing, Pricing Without Transacting
Charron, Jacques-Olivier (2013), Transacting Without Pricing, Pricing Without Transacting, World Economic Review, 2, p. 48-53
TypeArticle accepté pour publication ou publié
Journal nameWorld Economic Review
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Abstract (EN)The paper argues in favor of a radical disconnection between the exchange function and the valuation function of financial markets. It defends it from an investee’s point of view, mainly on the grounds that valuing financial assets is a matter of judgment. Financial assets do not have any intrinsic utility; hence allowing markets to price them implies their price changes are determined by expectations. These latter rely on information that can be variously framed and interpreted, hence no a priori and stable valuation criteria can prevail. Consequently, investees bear the consequences of judgments that do not meet basic criteria of justice. Insulating the valuation function from the transaction function of financial markets through the creation of independent valuation institutions could be a way to tackle this problem.
Subjects / KeywordsActionnaires; Jugement; Évaluation; Marché financier
Showing items related by title and author.
Valuing financial assets out of markets: a case for disconnecting the valuation function from the exchange function of financial markets Charron, Jacques-Olivier (2013-07) Communication / Conférence