Costs and benefits of dynamic trading in a lemons market

B-Tier
Journal: Review of Economic Dynamics
Year: 2019
Volume: 33
Pages: 105-127

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 a dynamic market with asymmetric information that creates the lemons problem. We compare efficiency of the market under different assumptions about the timing of trade. We identify positive and negative aspects of dynamic trading, describe the optimal market design under regularity conditions and show that continuous-time trading can always be improved upon if sellers are present at t=0. Instead, continuous trading is optimal if sellers arrive stochastically over time. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:18-277
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25