A Sufficient Condition for Synchronization Risk and Delayed Arbitrage

Hideaki Sakawa and Naoki Watanabel

The IUP Journal of Financial Economics, 2009, vol. VII, issue 2, 40-46

Abstract: This paper examines the sufficient condition for the existence of synchronization risk as defined in Abreu and Brunnermeier (2003). Using a numerical example, it shows that there is an upper bound to the selling threshold for bubble bursting. This implies that the selling threshold stipulated as an exogenous variable in Abreu and Brunnermeier (2003) should instead be treated endogenously.

Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjfe:v:07:y:2009:i:2:p:40-46

Access Statistics for this article

More articles in The IUP Journal of Financial Economics from IUP Publications
Bibliographic data for series maintained by G R K Murty ().