How trade splits up information sets and dealers carry out their brokerage of asymmetric information

Rodolfo Apreda

No 288, CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA

Abstract: n this paper we set forth a new perspective from which to understand and measure the brokerage of asymmetric information that intermediaries usually carry out. Firstly, we deal with partitions of a given set so as to lay grounds to our line of research. Secondly, we argue that trade splits up imperfect information sets, over which traders try to negotiate and profit, but also hide their opportunistic behavior from their counterparts. Next, the brokerage of asymmetric information is framed so as to stress the fact that any exchange is dual, entailing not only bargaining property rights but also information value. Lastly, we bring to light the linkage between differential rates, residual information sets and trading environments, which seems to be a functional toolkit for assessing how much asymmetric information is brokered eventually.

Keywords: asymmetric information; brokerage; differential rates; residual information sets; financial intermediaries (search for similar items in EconPapers)
JEL-codes: C78 D80 D82 G14 (search for similar items in EconPapers)
Date: 2005-03
New Economics Papers: this item is included in nep-fin and nep-fmk
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.ucema.edu.ar/publicaciones/download/documentos/288.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:cem:doctra:288

Access Statistics for this paper

More papers in CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA Contact information at EDIRC.
Bibliographic data for series maintained by Valeria Dowding ().