CHAPTER 18
Alternative Investments and Information Theory
In keeping with the environmental metaphor that occupied much of the previous chapter, here I turn to Andrew Loâs (2004) concept of information âecologiesâ (23). In contrast to Bookstaberâs idea of liquidity âhabitats,â Loâs notion is defined in terms of competition among different âspeciesâ of investors to uncover and react promptly to new information. The use of âpromptlyâ here suggests that there are some respects in which the two strands of analysis intertwine, as does Bookstaberâs account of how relevant certain forms of information are in different liquidity conditions. I will scratch the surface of this commonality between their two notions to some extent ...