Seminar Series

2021 - 2022

Speaker: Peter Bossaerts (U of Melbourne and U of Cambridge).

Title: “Computational Complexity and Asset Pricing”

joint with Elizabeth Bowman, Felix Fattinger, Harvey Huang, Carsten Murawski, Anirudh Suthakar, Shireen Tang and Nitin Yadav (all U of Melbourne).

Date: Thursday, March 10th at 12h30 (Paris Time).

Abstract: We study how markets help spread knowledge about solutions to the standard but computationally hard problem of maximizing value over indivisible goods subject to a budget constraint. In a first experiment, we find that complete markets are fairly ineffective. Still, participants use prices and volumes to improve their choices. In a second experiment, inspired by the notion of oracles in computer science, we show that a reduction to only one carefully chosen asset

dramatically improves price quality and knowledge dispersion. Our analysis provides a formalization of Hayek’s (1945) conjecture that markets help disseminate knowledge in society.

You will find the paper attached. Bio: Here is a link to the speaker’s website

https://sites.research.unimelb.edu.au/bmmlab/about-us/team/peter-bossaerts

You are cordially invited to participate to the seminar, which will take place in Room 327, Lascrosses building, if the sanitary situation permits it.

For those who will not be in the room, please find the zoom link below:

https://tbs-education-fr.zoom.us/j/84504499661?pwd=azZvMmp4UzJ6VWkxTDdRSmVWTUJnZz09

Meeting ID: 845 0449 9661  Passcode: 002342

If the sanitary situation does not permit the seminar to take place in presence, it will take place online and you will receive a mail announcing it beforehand.

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr