The Paul Woolley Centre at the FMG, London School of Economics, forms part of a network of three research initiatives that have been funded by Dr Paul Woolley.
The Paul Woolley Centre for the Study of Capital Market Dysfunctionality at the University of Technology Sydney and the Paul Woolley Research Initiative on Capital Market Dysfunctionalities at the Toulouse School of Economics address different, yet complementary research themes to the Paul Woolley Centre at the FMG.
Paul Woolley Centre - University of Technology Sydney
The Paul Woolley Centre for the Study of Capital Market Dysfunctionality at UTS has been established to research dysfunctionality in financial markets, and the financial institutions that operate within these markets. A capital market is dysfunctional when it suffers from chronic and systemic malfunctioning; a condition which can have far-reaching economic and social consequences. The researchers at the centre analyse why inefficient outcomes arise, the impact that they have on the economy, and how adverse effects can be mitigated.
The Centre has been established under the Faculty of Business at UTS with governance by a Management Committee and Advisory Committee.
Paul Woolley Research Initiative on Capital Market Dysfunctionalities -
IDEI, Toulouse School of Economics
The Paul Woolley Research Initiative at the Institut d'Economie Industrielle (IDEI), a research centre at the Toulouse School of Economics, studies capital market dysfunctionalities by using theoretical modelling as well as empirical and experimental methods to analyze the following issues:
Capital market dysfunctionalities arise when market equilibrium outcomes are socially inefficient or disruptive. Such dysfunctionalities can be associated with bounded rationality. But they can also occur even while all agents are rational and take individually optimal decisions. This could arise when the interests of market participants are conflicting and there are information asymmetries and market power. Externalities and coordination failures can also contribute to capital market dysfunctionalities.
The aim is to identify which aspects of the market can be dysfunctional and how to increase the efficiency of equilibrium outcomes.