Cookies?
Library Header Image
LSE Research Online LSE Library Services

Value of information in competitive economies with incomplete markets

Gottardi, Piero and Rahi, Rohit ORCID: 0000-0001-6887-9160 (2014) Value of information in competitive economies with incomplete markets. International Economic Review, 55 (1). 57 - 81. ISSN 0020-6598

Full text not available from this repository.

Identification Number: 10.1111/iere.12041

Abstract

We study the value of public information in competitive economies with incomplete markets. We show that generically the welfare effect of a change in the information available prior to trading can be in any direction: There exist changes in information that make all agents better off and changes for which all agents are worse off. In contrast, for any change in information, a Pareto improvement is feasible, that is, attainable by a planner facing the same informational and asset market constraints as agents. In this sense, the response of competitive markets to changes in information is typically not socially optimal.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1111/%28...
Additional Information: © 2014 Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
Divisions: Finance
Financial Markets Group
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
Z Bibliography. Library Science. Information Resources > ZA Information resources
Date Deposited: 21 Feb 2014 11:18
Last Modified: 20 Oct 2021 02:09
URI: http://eprints.lse.ac.uk/id/eprint/55801

Actions (login required)

View Item View Item