Market Manipulation: A Survey

Journal of Economic Surveys, Forthcoming

30 Pages Posted: 12 Apr 2011

See all articles by Tālis J. Putniņš

Tālis J. Putniņš

University of Technology Sydney (UTS); Stockholm School of Economics, Riga

Date Written: April 8, 2011

Abstract

Despite the significant attention that market manipulation has received in recent years many aspects of it are poorly understood. This article identifies from the theoretical and empirical literature what we do and do not know about market manipulation, and suggests directions for future research. We know that manipulation is possible and that it occurs in a wide variety of markets and circumstances. In contrast, we know little about how often manipulation occurs, its effects and how it responds to regulation. Suggested approaches for future research on these issues include: (i) collecting more comprehensive datasets of manipulation cases; (ii) using detection controlled estimation methods to overcome sample selection and partial observability problems; and (iii) conducting controlled experiments. This article also constructs a novel and broad taxonomy of the different types of market manipulation and discusses approaches to defining manipulation.

Keywords: market manipulation, regulation, survey

JEL Classification: G14, G18, K22, K42

Suggested Citation

Putnins, Talis J., Market Manipulation: A Survey (April 8, 2011). Journal of Economic Surveys, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1805642

Talis J. Putnins (Contact Author)

University of Technology Sydney (UTS) ( email )

PO Box 123
Broadway
Sydney
Australia
+61 2 9514 3088 (Phone)

Stockholm School of Economics, Riga ( email )

Strelnieku iela 4a
Riga, LV 1010
Latvia
+371 67015841 (Phone)

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