Gottardi, Piero and Rahi, Rohit (2007) Value of information in competitive economies with incomplete markets. 596. Financial Markets Group, London School of Economics and Political Science, London, UK.
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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)|
|Additional Information:||© 2007 the authors|
|Uncontrolled Keywords:||Competitive Equilibrium, Incomplete Markets, Value of Information|
|Library of Congress subject classification:||H Social Sciences > HB Economic Theory|
|Journal of Economic Literature Classification System:||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
|Date Deposited:||08 May 2008 15:00|
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