ABSTRACT In statistics, samples are drawn from a population in a data‐generating process (DGP). Standard errors measure the uncertainty in estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence‐generating process (EGP). We claim that EGP variation across researchers adds uncertainty—nonstandard errors (NSEs). We study NSEs by letting 164 teams test the same hypotheses on the same data. NSEs turn out to be sizable, but smaller for more reproducible or higher rated research. Adding peer‐review stages reduces NSEs. We further find that this type of uncertainty is underestimated by participants.

This paper examines the short-run weak-form efficiency of equities, using a proprietary data set permitting analysis of orderbook characteristics to measure short-term price predictability. The results show that high levels of algorithmic trader activity in a stock lowers the level of short-run predictability. We find orderbook imbalance and slope of the order book contain the most information useful for predicting future price movements, and proprietary algorithmic traders lead price discovery vis-a-vis agency algorithmic traders, highlighting that liquidity suppliers are not exclusively noise traders.

The impact of derivatives is almost invariably measured by the liquidity outcomes on the underlying. We explore the relationship between efficiency, fairness and derivatives with respect to the underlying. We provide evidence that the presence of a derivative improves liquidity in the underlying but decreases the degree of fairness - proxied by manipulation likelihood. Our study highlights that a leveraged derivative entices manipulation in the underlying and that typical inhibitors to manipulation, namely high visible execution costs, are in fact desirable.

We showhowtrading protocols impede the price discovery process in single stock futures as implicit trade costs outweigh explicit costs. Despite the trade volume dominance, trade and leverage cost efficiency, the futures market accounts for only 35% of the price discovery vis-à-vis the spot market. Specifically, futures market’s informational efficiency is adversely affected by market frictions in the formof market wide position limits, minimum contract values and margin requirements.

The absence of well-defined property rights in an ocean setting can lead to the over-exploitation of its resources. This paper examines one case, the Gili Islands, in Indonesia, where the weak enforcement of legally defined State rights led to the formalisation of local rules that protect coral reefs through a process of bargaining between dive schools and fishermen, who each utilise the surrounding coral reefs for their livelihoods. This article discusses whether it is possible, under these institutional arrangements, to increase the area of coral reef protection and whether these institutional arrangements can be introduced where similar threats to coral reefs exist.

This paper tests for the existence of the magnet effect linked to price limits imposed in China's equity markets and how a market liberalization event affects trading in securities bound by price limits. The magnet effect of price limits theorises that, instead of stabilising markets, price limits act as a magnet and result in trade acceleration towards the limits, increasing the likelihood of hit and subsequent constraint on prices. This study provides evidence of the magnet effect in China and evidence that its effect magnifies following the opening of China's capital markets via the Shanghai-Hong Kong Connect. The increased magnitude of the magnet effect of price limits is due to new capital inflow from global markets via Hong Kong, as effects are greater for firms that experience the largest increase in capital inflow.