The Informational Role of Volume Vis-à-Vis No-Trade Results: A Note

Chiente Hsu and Gerhard O. Orosel

Swiss Journal of Economics and Statistics (SJES), 1998, vol. 134, issue II, 133-158

Abstract: The prominent Milgrom-Stokey no-trade theorem shows that differences in private information alone cannot give rise to trade among fully rational agents. In this note we demonstrate that similar no-trade results hold as well for a model introduced recently by Blume, Easly and O'Hara although in this model the agents are only boundedly rational and therefore the Milgrom-Stokey theorem does not apply. Our conclusion is that for an analysis of the informational content of volume one needs a model that contains non-informational reasons for trade in addition to differences in information.

Date: 1998
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sjes.ch/papers/1998-II-2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ses:arsjes:1998-ii-2

Access Statistics for this article

Swiss Journal of Economics and Statistics (SJES) is currently edited by Marius Brülhart

More articles in Swiss Journal of Economics and Statistics (SJES) from Swiss Society of Economics and Statistics (SSES) Contact information at EDIRC.
Bibliographic data for series maintained by Kurt Schmidheiny ().