On Information Aggregation In Financial Markets
Download On Information Aggregation In Financial Markets full books in PDF, epub, and Kindle. Read online free On Information Aggregation In Financial Markets ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Information Aggregation in Financial Markets with Career Concerns
Author | : Amil Dasgupta |
Publisher | : |
Total Pages | : |
Release | : 2009 |
Genre | : |
ISBN | : |
Download Information Aggregation in Financial Markets with Career Concerns Book in PDF, Epub and Kindle
What are the equilibrium features of a dynamic financial market in which traders care about their reputation for ability? We modify a standard sequential trading model to include traders with career concerns. We show that this market cannot be informationally efficient: there is no equilibrium in which prices converge to the true value, even after an infinite sequence of trades. We characterize the most revealing equilibrium of this game and show that an increase in the strength of the traders' reputational concerns has a negative effect on the extent of information that can be revealed in equilibrium but a positive effect on market liquidity.
Information Aggregation in Financial Markets with Career Concerns Related Books
Pages:
Pages: 40
Pages: 324
Pages: 422
Pages: 234