Anonymity and individual risk
AbstractAdverse selection economies with private information are generally studied under the assumption that contracts are exclusive. That is, retrading is prohibited. An alternative market mechanism, the anonymous mechanism, is studied here. Risk averse agents trade contingent claims directly and side markets are in equilibrium. The result is the anonymous equilibrium. The anonymous equilibrium results in a set of endogenous transfers and subsidies.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 144 (2009)
Issue (Month): 6 (November)
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Web page: http://www.elsevier.com/locate/inca/622869
Adverse selection Retrading Anonymous equilibrium;
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