Market Selection and Asymmetrick Information
AbstractDo investors making complementary investments face the correct incentives, especially when they cannot contract with each other prior to their decisions? We present a two-sided matching model in which buyers and sellers make investments prior to matching. Once matched, buyer and seller bargain over the price, taking into account outside options. Efficient decisions can always be sustained in equilibrium. We characterize the inefficiencies that can arise in equilibrium, and show that equilibria will be constrained efficient. We also show that the degree of diversity in a large market has implications for the extent of any inefficiency.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences in its series CARESS Working Papres with number 00-07.
Date of creation:
Date of revision:
Contact details of provider:
Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297
Web page: http://www.ssc.upenn.edu/ier/paperier.html
More information through EDIRC
Other versions of this item:
- George J. Mailath & Alvaro Sandroni, 2003. "Market Selection and Asymmetric Information," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 343-368.
- George J. Mailath & Alvaro Sandroni, 2003. "Market Selection and Asymmetric Information," Review of Economic Studies, Wiley Blackwell, vol. 70(2), pages 343-368, 04.
- George J. Mailath & Alvaro Sroni, . "Market Selection and Asymmetric Information," Penn CARESS Working Papers d50f0ddbbf9f79b6e05bb90a5, Penn Economics Department.
- George J. Mailath & Alvaro Sandroni, 2000. "Market Selection and Asymmetric Information," CARESS Working Papres mkt-selection, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Sciubba, E., 1999.
"The Evolution of Portfolio Rules and the Capital Asset Pricing Model,"
Cambridge Working Papers in Economics
9909, Faculty of Economics, University of Cambridge.
- Emanuela Sciubba, 2006. "The evolution of portfolio rules and the capital asset pricing model," Economic Theory, Springer, vol. 29(1), pages 123-150, September.
- Scott Condie & Jayant Ganguli, 2012.
"The Pricing Effects of Ambiguous Private Information,"
INET Research Notes
16, Institute for New Economic Thinking (INET).
- Jayant Ganguli & Scott Condie, 2012. "The pricing effects of ambiguous private information," Economics Discussion Papers 720, University of Essex, Department of Economics.
- Luo, Guo Ying, 2012. "Conservative traders, natural selection and market efficiency," Journal of Economic Theory, Elsevier, vol. 147(1), pages 310-335.
- Blume, Lawrence & Easley, David, 2009. "The market organism: Long-run survival in markets with heterogeneous traders," Journal of Economic Dynamics and Control, Elsevier, vol. 33(5), pages 1023-1035, May.
- Hongjun Yan, 2008.
"Natural Selection in Financial Markets: Does It Work?,"
INFORMS, vol. 54(11), pages 1935-1950, November.
- Hongjun Yan, 2008. "Natural Selection in Financial Markets: Does it Work?," Yale School of Management Working Papers amz2648, Yale School of Management, revised 01 May 2008.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.