Academic Journal
Efficiency and information transmission in bilateral trading
| Title: | Efficiency and information transmission in bilateral trading |
|---|---|
| Authors: | Robert Shimer, Iván Werning |
| Source: | Review of Economic Dynamics. 33:154-176 |
| Publication Status: | Preprint |
| Publisher Information: | Elsevier BV, 2019. |
| Publication Year: | 2019 |
| Subject Terms: | jel:G14, jel:D82, 0502 economics and business, 05 social sciences, jel:D83 |
| Description: | We study pairwise trading mechanisms in the presence of one-sided or two-sided private information and two-sided limited commitment, whereby either trader can walk away from a proposed trade when he learns the trading price. We show that when one trader's information is relevant for the other trader's value of the asset, optimal trading arrangements may necessarily conceal the traders' information. While limited commitment itself may not be costly, it shapes how prices transmit information. |
| Document Type: | Article |
| Language: | English |
| ISSN: | 1094-2025 |
| DOI: | 10.1016/j.red.2019.02.004 |
| Access URL: | http://www.nber.org/papers/w21495.pdf https://www.sciencedirect.com/science/article/pii/S1094202518303132 https://www.nber.org/papers/w21495 http://www.nber.org/papers/w21495 https://econpapers.repec.org/RePEc:red:issued:18-279 http://econ.as.nyu.edu/docs/IO/33061/efficiency.pdf https://ideas.repec.org/a/red/issued/18-279.html |
| Rights: | Elsevier TDM |
| Accession Number: | edsair.doi.dedup.....506464431e96d212b6a0481527a1216b |
| Database: | OpenAIRE |
| ISSN: | 10942025 |
|---|---|
| DOI: | 10.1016/j.red.2019.02.004 |