Information externalities and intermediaries in frictional search markets
نویسندگان
چکیده
منابع مشابه
Information Externalities and Intermediaries in Frictional Search Markets Information Externalities and Intermediaries in Frictional Search Markets *
In frictional matching markets with heterogeneous buyers and sellers, sellers incur discrete showing costs to show goods to buyers who incur discrete inspection costs to assess the suitability of the goods on offer. This paper studies how brokers can help reduce these costs by managing the level and mix of goods in their inventory. We find that intermediaries emerge and improve social welfare w...
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Informed investors are a source of illiquidity, but those pursuing di¤erently informed strategies also generate quasi -noise trading. Quasi-noise trading creates non-monotonic externalities in information choice that shape the composition of active investment and that inuence investor herding, liquidity spirals, asset comovement, along with the information content of prices. These externalitie...
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ژورنال
عنوان ژورنال: Canadian Journal of Economics/Revue canadienne d'économique
سال: 2014
ISSN: 0008-4085,1540-5982
DOI: 10.1111/caje.12114