Brokerage Commission Schedules.

A-Tier
Journal: Journal of Finance
Year: 1993
Volume: 48
Issue: 4
Pages: 1379-1402

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

It is generally optimal for risk-sharing reasons to base a charge for information on the signal realization. When this is not possible, a charge based on the amount of trading, a brokerage commission, may be a good alternative. The optimal brokerage commission schedule is derived for a risk-neutral information seller faced with risk-averse purchasers who may differ in their risk aversion. Revenues from the brokerage commission are compared with those from a fixed charge for information and the optimal mutual fund management fee. Copyright 1993 by American Finance Association.

Technical Details

RePEc Handle
repec:bla:jfinan:v:48:y:1993:i:4:p:1379-1402
Journal Field
Finance
Author Count
2
Added to Database
2026-01-24