Costs and Benefits of Dynamic Trading in a Lemons Market
, di Davide Ripamonti
William Fuchs, University of California Berkeley
Interviene: William Fuchs, University of California Berkeley
Organizzato da: Dipartimento di Economia e Dipartimento di Scienze delle Decisioni
Abstract: We study a dynamic market with asymmetric information that creates the lemons problem. We compare e¢ ciency of the market under different assumptions about the timing of trade. We identify positive and negative aspects of dynamic trading, describe the optimal market design under regularity conditions and show that continuous-time trading can be always improved upon.