Information aggregation in competitive markets

We study when equilibrium prices can aggregate information in an auction market with a large population of traders. Our main result identifies a property of information—the betweenness property—that is both necessary and sufficient for information aggregation. The characterization provides novel predictions about equilibrium prices in complex, multidimensional environments.

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Year of publication:	2021
Authors:	Siga, Lucas ; Mihm, Maximilian
Published in:	Theoretical Economics. - The Econometric Society, ISSN 1933-6837, ZDB-ID 2220447-7. - Vol. 16.2021, 1, p. 161-196
Publisher:	The Econometric Society

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Type of publication:	Article
Language:	English
Other identifiers:	10.3982/te3559 [DOI]
Source:	Other ZBW resources

Persistent link: https://www.econbiz.de/10012637420