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Markets

Why the Texas Power Market Failed

Texas-based energy economist Ed Hirs ’81 says the February 2021 power crisis exposed longstanding, fatal flaws in the state’s energy market design and oversight.

Workers repair a power line in Austin, Texas, on February 18, 2021. Photo: Thomas Ryan Allison/Bloomberg via Getty Images.
  • What’s the Right Algorithm for Quantitative Investing?

    Computer-based trading dominates markets, with a majority of trading activity in major markets happening without any human intervention. Robert Litterman, a pioneer of the quantitative investing approach, spoke with Yale Insights about how ruthless competition keeps the field changing and why he believes human judgment remains an essential component of any strategy.
    What’s the Right Algorithm for Quantitative Investing?
  • What Dangers Lurk for the Financial System?

    Paul Tucker was one of the key players at the Bank of England during the financial crisis of 2008-09. He says that the actions of policymakers and regulators since that time have built a more resilient financial system. But he also sees big challenges ahead that will require regulators to be more nimble and flexible than they’ve ever been before.
    Front of the Bank of England
  • How Does an IPO Affect Rival Firms?

    The initial public offering (IPO) market recently saw its busiest week since 2001. A new study by Yale School of Management professors Matthew Spiegel and Heather Tookes reveals how these and other IPOs affect rival firms over time.
  • Firms’ Shared Ties Hurt Merger Performance

    Merger performance varies greatly depending on the number of pre-merger third-party ties connecting the acquiring firm to its partner, according to a new study by researchers at the Yale School of Management and INSEAD.
  • Market Rule Breakers Pay a Price

    Organizations that don’t conform to the norms of their market category are penalized with higher prices, according to new research co-authored by Professor Amandine Ody-Brasier.
  • Classroom Insights: Lessons from the First Stock Bubble

    Each time it happens, it seems in retrospect like people have lost their minds, and that such widespread madness could never happen again. And then it happens again. Yale SOM professor William Goetzmann looks back at an investing mania from the 18th century to better understand the forces that can create such distortions.
    Mississippi Company illustration of civil unrest in the streets