Improving the Performance of the Stock Market
分析了1987年10月股市崩盘和恐慌事件，指出做市商和指数套利者只是中介，价格由耐心和急躁的投资者决定，并提出了改进股票机制的建议。
To develop improvements in the stock mechanism which would help prevent another market break, it is important to understand the structure of the mechanism for stock trading. Market makers and index arbitragers are only intermediaries between the patient and impatient traders who ultimately determine prices. Institutions for maintaining trust based upon accountability to customers in securities trading are scarce. The events of October 1987 unfolded as two distinct sets of events: a crash in which impatient sellers overwhelmed patient buyers, and a panic in which solvency worries took traders out of the markets. Proposals to improve the stock mechanism should address the proper role of makers, the lack of accountability of the mechanism to customers, and the differences between panics and crashes.