Value of information in competitive economies with incomplete markets

Gottardi, Piero and Rahi, Rohit ORCID: 0000-0001-6887-9160 (2007) Value of information in competitive economies with incomplete markets. . Financial Markets Group, The 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)
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
Date Deposited:	08 May 2008 15:00
Last Modified:	06 Sep 2022 12:36
URI:	http://eprints.lse.ac.uk/id/eprint/4749

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