Asset Price Variability under Asymmetric Information.

This paper examines the effect of a change in the percentage of informed participants in an asset market on the variability of prices. The authors consider equilibrium in the asset market before the information is revealed to a subset of traders. They find that ex ante price variability is increased by a rise in the proportion of informed market participants. Copyright 1990 by Royal Economic Society.

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Year of publication:	1990
Authors:	Black, Jane ; Tonks, Ian
Published in:	Economic Journal. - Royal Economic Society - RES, ISSN 1468-0297. - Vol. 100.1990, 400, p. 67-77
Publisher:	Royal Economic Society - RES

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005393342