Finance Papers
Title
Document Type
Journal Article
Date of this Version
2010
Publication Source
Journal of Economic Theory
Volume
145
Issue
5
Start Page
1675
Last Page
1703
DOI
10.1016/j.jet.2010.03.008
Abstract
We study the possibility of trade for purely informational reasons. We depart from previous analyses (e.g. Grossman and Stiglitz (1980) and Milgrom and Stokey (1982)) 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.
Copyright/Permission Statement
© 2010. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/.
Recommended Citation
Bond, P., & Eraslan, H. (2010). Information-Based Trade. Journal of Economic Theory, 145 (5), 1675-1703. http://dx.doi.org/10.1016/j.jet.2010.03.008
Date Posted: 27 November 2017
This document has been peer reviewed.