BIROn - Birkbeck Institutional Research Online

    Asymmetric information and survival in financial markets

    Sciubba, Emanuela (2005) Asymmetric information and survival in financial markets. Economic Theory 25 (2), pp. 353-379. ISSN 0938-2259.

    Full text not available from this repository.

    Abstract

    In the evolutionary setting for a financial market developed by Blume and Easley (1992), we consider an infinitely repeated version of a model á la Grossman and Stiglitz (1980) with asymmetrically informed traders. Informed traders observe the realisation of a payoff relevant signal before making their portfolio decisions. Uninformed traders do not have direct access to this kind of information, but can partially infer it from market prices. As a counterpart for their privileged information, informed traders pay a per period cost. As a result, information acquisition triggers a trade-off in our setting. We prove that, so long as information is costly, uninformed traders survive.

    Metadata

    Item Type: Article
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Sarah Hall
    Date Deposited: 27 Jul 2020 16:50
    Last Modified: 02 Aug 2023 18:01
    URI: https://eprints.bbk.ac.uk/id/eprint/32693

    Statistics

    Activity Overview
    6 month trend
    0Downloads
    6 month trend
    175Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item