Charron Jacques-Olivier, 2013, « Transacting without pricing, pricing without transacting : a case for disconnecting the valuation function from the exchange function of financial markets », World Economic Review, n°2, p. 48-53.


    The paper argues in favor of a radical disconnection between the exchange function and the valuation


    function of financial markets. It defends it from an investees point of view, mainly on the grounds that valuing


    financial assets is a matter of judgment. Financial assets do not have any intrinsic utility; hence allowing


    markets to price them implies their price changes are determined by expectations. These latter rely on


    information that can be variously framed and interpreted, hence no a priori and stable valuation criteria can


    prevail. Consequently, investees bear the consequences of judgments that do not meet basic criteria of


    justice. Insulating the valuation function from the transaction function of financial markets through the


    creation of independent valuation institutions could be a way to tackle this problem.


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