Topic
Limit price
About: Limit price is a research topic. Over the lifetime, 4865 publications have been published within this topic receiving 148546 citations.
Papers published on a yearly basis
Papers
More filters
TL;DR: The price limit trading rule has a cooling-off effect (object to the magnet effect), indicating that the rule takes effect in the Chinese stock markets, and it is found that price continuation is much more likely to occur than price reversal on the next trading day after a limit-hitting day, especially for down-limit hits.
Abstract: Price limit trading rules are adopted in some stock markets (especially emerging markets) trying to cool off traders’ short-term trading mania on individual stocks and increase market efficiency. Under such a microstructure, stocks may hit their up-limits and down-limits from time to time. However, the behaviors of price limit hits are not well studied partially due to the fact that main stock markets such as the US markets and most European markets do not set price limits. Here, we perform detailed analyses of the high-frequency data of all A-share common stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2000 to 2011 to investigate the statistical properties of price limit hits and the dynamical evolution of several important financial variables before stock price hits its limits. We compare the properties of up-limit hits and down-limit hits. We also divide the whole period into three bullish periods and three bearish periods to unveil possible differences during bullish and bearish market states. To uncover the impacts of stock capitalization on price limit hits, we partition all stocks into six portfolios according to their capitalizations on different trading days. We find that the price limit trading rule has a cooling-off effect (object to the magnet effect), indicating that the rule takes effect in the Chinese stock markets. We find that price continuation is much more likely to occur than price reversal on the next trading day after a limit-hitting day, especially for down-limit hits, which has potential practical values for market practitioners.
134 citations
TL;DR: In this article, the authors show that appropriate online price partitioning may enhance consumers' purchase intentions, perceived value, and price satisfaction, and reduce further information search intentions, but when multiple surcharges are added to partition the price further, these positive effects may decline leading to an inverted “U” shape function of partitioning on price perceptions.
134 citations
TL;DR: In this paper, the authors have attempted to measure the impact of circuit breakers on price volatility or to examine whether volatility fluctuations arise from speculative overreaction or information arrival in the stock market.
Abstract: Since the market crash on October 19, 1987, it has been commonplace in policy circles to speak of the virtues of circuit breakers—devices for halting or limiting trading when prices have moved “too much.” Some see it as self-evident that devices such as price limits curb “excess volatility,” while others suggest that circuit breakers interfere with the price discovery process and the impounding of information in market prices. Surprisingly, few empirical researchers have attempted to measure the impact of circuit breakers on price volatility or to examine whether volatility fluctuations arise from “speculative overreaction” or “information arrival.”
134 citations
TL;DR: In this paper, product heterogeneity is introduced into the context of spatial price discrimination and the strong properties of the standard homogeneous goods case (which are attained as a limit case here) are shown to be no longer valid.
Abstract: Product heterogeneity is introduced into the context of spatial price discrimination. Many of the strong properties of the standard homogeneous goods case (which are attained as a limit case here) are shown to be no longer valid. In particular, the social optimum is no longer sustainable as a market equilibrium unless products are either identical or else very different.
133 citations
TL;DR: The findings suggest that the manufacturer should post the direct price before or upon, but not after, setting the wholesale price for the retailer, which constitutes the subgame perfect Nash equilibrium of the noncooperative game between channel members.
133 citations