Efficiency and information transmission in bilateral trading

B-Tier
Journal: Review of Economic Dynamics
Year: 2019
Volume: 33
Pages: 154-176

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study pairwise trading mechanisms in the presence of one-sided or two-sided private information and two-sided limited commitment, whereby either trader can walk away from a proposed trade when he learns the trading price. We show that when one trader's information is relevant for the other trader's value of the asset, optimal trading arrangements may necessarily conceal the traders' information. While limited commitment itself may not be costly, it shapes how prices transmit information. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:18-279
Journal Field
Macro
Author Count
2
Added to Database
2026-01-29