Information-based trade

Philip Bond; Hülya Eraslan

doi:10.1016/j.jet.2010.03.008

Information-based trade

Philip Bond^*, Hülya Eraslan

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

18 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	1675-1703
Number of pages	29
Journal	Journal of Economic Theory
Volume	145
Issue number	5
DOIs	https://doi.org/10.1016/j.jet.2010.03.008
Publication status	Published - Sept 2010
Externally published	Yes

Keywords

Information
No-trade theorems
Speculative trade
Trade

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10.1016/j.jet.2010.03.008

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title = "Information-based trade",

abstract = "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.",

keywords = "Information, No-trade theorems, Speculative trade, Trade",

author = "Philip Bond and H{\"u}lya Eraslan",

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AU - Eraslan, Hülya

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AB - 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.

KW - Information

KW - No-trade theorems

KW - Speculative trade

KW - Trade

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DO - 10.1016/j.jet.2010.03.008

M3 - Article

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VL - 145

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EP - 1703

JO - Journal of Economic Theory

JF - Journal of Economic Theory

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ER -

Information-based trade

Abstract

Keywords

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