Inelastic market hypothesis
In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis Gabaix Koijen - 2020-2021
Mike Green Shatters The Myth About Passive Investing — Down the Middle with DiMartino Booth
min 40
multiplier is 2 for active
multiplier is 17 now
multiplier is 5 according to Gabaix
passive becomes more volatile as the it becomes inelastic - inflows/leverage come in
market crash - example - XIV crash
example - an order to buy an index, then a market-maker needs to buy 5perc allocation to Apple
no fighting for information?!
not according stock's market cap, but just a fraction
The Inelastic Market Hypothesis: A Microstructural Interpretation - Jean-Philippe Bouchaud 2021
Isichenko 2023 Inelastic Stock Market Response to Capital Flows, Conservation of Money, and the Paradox of Investing
2021 Costly Trading Michael Isichenko