---
title: Optimal Liquidity and Asset Bubbles
url: https://www.ml-quant.com/papers/ssrn/4526476/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4526476
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4526476
featured: 2023-08-02
citations: 0
topic: Trading, Microstructure & Execution
---


# Optimal Liquidity and Asset Bubbles

Asset price bubbles can be created by the interaction between limited participation and credit lines, benefiting arbitrageurs and liquidity providers, but not regular stockholders due to increased stock volatility.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4526476
- Identifier: SSRN 4526476
- Released: 2023-07-31
- First featured: Quant Letter No. 10 (2023-08-02): https://www.ml-quant.com/issues/2023-08-02/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Trading, Microstructure & Execution

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