Link : Paper This paper was published in Journal of Finance(1992) by Cornell professors, David Easley and Maureen O’Hara. It is one of the classic papers in market microstructure that shows that timing of the trade is not exogenous to price formation process. In this post, I will briefly go over the contents of the paper. The paper starts off giving some basic history of the models where time dimension of the trade is never explored or does not impact the price process.

The book is a take on how we look at the world and brand something as an advantage and something as a limitation. The things that we attribute as advantages sometimes become limitations and vice-versa. There are three parts to the book and each part has three stories. Part I: The advantages of disadvantages (and the disadvantage of advantages). The three stories mentioned in this part of the book go on to illustrate that we are often mislead about the nature of advantage.

[youtube https://www.youtube.com/watch?v=Zx8uYIfUvh4?rel=0]

Prestige is especially dangerous to the ambitious. If you want to make ambitious people waste their time on errands, the way to do it is to bait the hook with prestige. That’s the recipe for getting people to give talks, write forewords, serve on committees, be department heads, and so on. It might be a good rule simply to avoid any prestigious task. If it didn’t suck, they wouldn’t have had to make it prestigious.

The author is a CS professor at SUNY, Stony Brook. This book recounts his experience of building a mathematical system to bet on the play outcomes of what is considered the fastest ball game in the world, “Jai alai”. In the English vernacular this is sometimes spelled as it sounds,that is, “hi-li”. The book recounts the history of the game and how it made to US from Spain and France. However the focus of the book is on using mathematical modeling and computers to analyze the game and design a betting system.