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The negative value of public information in the Glosten–Milgrom model

Romans Pancs

Economics Letters, 2014, vol. 124, issue 2, 207-210

Abstract: In the standard market-microstructure model of Glosten and Milgrom (1985), public information can have negative social value. Equivalently, an increase in informational asymmetry can raise the total surplus from trade.

Keywords: Market microstructure; Negative social value of public information; Glosten–Milgrom (search for similar items in EconPapers)
JEL-codes: D02 D40 G14 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1016/j.econlet.2014.05.014

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