Information-based trade

Information-based trade

We study the possibility of trade for purely informational reasons. We depart from previous analyses (e.g. Grossman and Stiglitz (1980) [22] and Milgrom and Stokey (1982) [32]) by allowing the final payoff of the asset being traded to depend on an action taken by its eventual owner. We characterize...

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Veröffentlicht in:Journal of economic theory 2010-09, Vol.145 (5), p.1675-1703
Hauptverfasser: Bond, Philip, Eraslan, Hülya
Format: Artikel
Sprache:eng
Schlagworte:
Documents
Economic theory
Economics
Equilibrium models
Financial speculation
Game theory
Information
Information dissemination
Information economics
Information Trade Speculative trade No-trade theorems
No-trade theorems
Pay-off
Securities trading
Speculative trade
Studies
Trade
Trade models
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Beschreibung
Zusammenfassung:We study the possibility of trade for purely informational reasons. We depart from previous analyses (e.g. Grossman and Stiglitz (1980) [22] and Milgrom and Stokey (1982) [32]) by allowing the final payoff of the asset being traded to depend on an action taken by its eventual owner. We characterize conditions under which equilibria with trade exist.
ISSN:0022-0531
1095-7235
DOI:10.1016/j.jet.2010.03.008