Gottardi, Piero and Rahi, Rohit (2007) Value of information in competitive economies with incomplete markets. . Financial Markets Group, London School of Economics and Political Science, London, UK.
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Abstract
A substantial literature addresses the negative eect on welfare of the release of information in a competitive market economy. We show that the value of information in this setting is typically positive if asset markets are suciently incomplete. More specically, for any competitive equilibrium of a generic economy, we can nd a ner information structure such that an allocation that is resource feasible and measurable with respect to this information ex- post Pareto dominates the given equilibrium allocation.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://fmg.lse.ac.uk |
| Additional Information: | © 2007 the authors |
| Divisions: | Financial Markets Group Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D52 - Incomplete Markets D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General D - Microeconomics > D6 - Welfare Economics > D60 - General |
| Sets: | Research centres and groups > Financial Markets Group (FMG) Collections > Economists Online Departments > Economics Collections > LSE Financial Markets Group (FMG) Working Papers |
| Date Deposited: | 08 May 2008 15:00 |
| Last Modified: | 14 Nov 2020 00:08 |
| URI: | http://eprints.lse.ac.uk/id/eprint/4749 |
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