Information-based trade

Philip Bond and Hülya Eraslan

Journal of Economic Theory, 2010, vol. 145, issue 5, 1675-1703

Abstract: We study the possibility of trade for purely informational reasons. We depart from previous analyses (e.g. Grossman and Stiglitz (1980) [22] and Milgrom and Stokey (1982) [32]) by allowing the final payoff of the asset being traded to depend on an action taken by its eventual owner. We characterize conditions under which equilibria with trade exist.

Keywords: Information; Trade; Speculative; trade; No-trade; theorems (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (12)

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Working Paper: Information Based Trade (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:145:y:2010:i:5:p:1675-1703

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