no trade theorems

Ricardo Serrano-Padial

from Palgrave Macmillan

Abstract: No trade theorems represent a class of results showing that, under certain conditions, trade in asset markets between rational agents cannot be explained on the basis of differences in information alone. They pose a challenge to provide a theoretical justification of the high trade volumes observed in financial markets. This article overviews existing no trade theorems and discusses alternative approaches to modelling information-based trade.

Keywords: asset markets; demand shocks; no trade theorems; trade volume; uncertainty (search for similar items in EconPapers)
JEL-codes: C72 D44 D82 (search for similar items in EconPapers)
Date: 2010
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