Information Reliability and a Theory of Financial Intermediation

S-Tier
Journal: Review of Economic Studies
Year: 1984
Volume: 51
Issue: 3
Pages: 415-432

Authors (2)

Ram T. S. Ramakrishnan (not in RePEc) Anjan V. Thakor (Washington University in St. L...)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

This paper is an analysis of when it will be beneficial for agents engaged in the production of information to form coalitions. The model is cast in a financial market framework, thus leading to an identification of conditions sufficient for the existence of financial intermediaries. Intermediation is shown to improve welfare if informational asymmetries are present, and the information generated to rectify these asymmetries is potentially unreliable. The usual appeal to transactions costs to explain intermediation is not needed.

Technical Details

RePEc Handle
repec:oup:restud:v:51:y:1984:i:3:p:415-432.
Journal Field
General
Author Count
2
Added to Database
2026-01-29