  Biondi et al. (2012) develop an analytical model to examine the emergent
dynamic properties of share market price formation over time, capable to
capture important stylized facts. These latter properties prove to be sensitive
to regulatory regimes for fundamental information provision, as well as to
market confidence conditions among actual and potential investors. Regimes
based upon mark-to-market (fair value) measurement of traded security, while
generating higher linear correlation between market prices and fundamental
signals, also involve higher market instability and volatility. These regimes
also incur more relevant episodes of market exuberance and vagary in some
regions of the market confidence space, where lower market liquidity further
occurs.
