Why Do Price Limits Exist in Stock Markets? A Manipulation‐Based Explanation
构建模型说明价格限制可能阻止市场操纵，并基于模型预测，在操纵可能性高的市场，监管者更可能实施价格限制，实证证据支持这一假设。
Abstract Numerous stock market regulators around the world impose daily price limits on individual stock price movements. We derive a simple model that shows that price limits may deter stock market manipulators. Based on our model's implications, we predict that regulators impose price limit rules for markets where the likelihood of manipulation is high. We present empirical evidence consistent with this hypothesis. Our study is the first to formally propose a manipulation‐based rationale for the existence of price limits in stock markets.