Paul Woolley Research Initiative on Capital Market Dysfunctionalities

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 Paul Woolley Research Initiative at IDEI in Toulouse will study capital market dysfunctionalities. We will use theoretical modelling as well as empirical and experimental methods to analyze these issues. We will endeavour to publish our research in top academic journals, and also to delineate its policy implications and discuss them with practitioners, policy makers and the media. We will aim at identifying which aspects of the market can be dysfunctional and how to increase the efficiency of equilibrium outcomes. Our research effort will be conducted in synergy with the Paul Woolley Centres in London and Sydney.

The Paul Woolley Research Initiative at IDEI-R Toulouse is run by a management board, meeting formally twice a year. The members of the Board are Paul Woolley, the Director of IDEI-R (Patrick Rey), Jean Charles Rochet (Research Director at IDEI-R) and Bruno Biais (Director of the Paul Woolley Research Initiative in Toulouse.)
The Paul Woolley Research Initiative at IDEI-R Toulouse is steered by a scientific committee, chaired by Jean Tirole (Director of the Toulouse School of Economics and Scientific Director of IDEI). The secretary of the committee is Bruno Biais. The other members of the scientific committee include: Paul Woolley, the director of IDEI-R (Patrick Rey), the director of the London Paul Woolley Centre (Dimitri Vayanos), and external members.