Information transmission and the emergence of a peculiar trading facility in certain emerging markets

Hammad Siddiqi

MPRA Paper from University Library of Munich, Germany

Abstract: A peculiar carry over transaction facility has been associated with emerging markets of India and Pakistan. We show that the trading facility can be considered a market response to the information gaps in these markets. Information can be credibly transmitted through this trading facility. Hence, the emergence of such a trading facility is, perhaps, an example of a creative market response to information problems.

Keywords: Information Asymmetry; Information Transmission; Emerging Markets; Perfect Bayesian Equilibria; Badla Finance (search for similar items in EconPapers)
JEL-codes: D00 D82 G10 N20 (search for similar items in EconPapers)
Date: 2010-04-11
New Economics Papers: this item is included in nep-cta and nep-ict
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