Liquidity as Social Expertise
نویسندگان
چکیده
منابع مشابه
Liquidity as Social Expertise
This paper proposes a theory of liquidity dynamics. Illiquidity results from asymmetric information. Observing the historical track record teaches agents how to interpret public information and helps overcome information asymmetry. There can be an illiquidity trap: too much asymmetric information leads to the breakdown of trade, which interrupts learning and perpetuates illiquidity. Liquidity f...
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To reduce the risk of another financial crisis, the Dodd-Frank Act requires that trading in certain derivatives be backed by clearinghouses. Critics mount two main objections: a clearinghouse shifts risk instead of reducing it; and a clearinghouse could fail, requiring a bailout. This Article's observation that clearinghouses engage in liquidity partitioning answers both. Liquidity partitioning...
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Social media provides a fertile ground for expertise location. The public nature of the data supports expertise inference with little privacy infringement and, in addition, presentation of direct and detailed evidence for an expert’s skillfulness in the queried topic. In this work, we study the use of social media for expertise evidence. We conducted two user surveys of enterprise social media ...
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I study expertise acquisition in a model of trading under asymmetric information. I propose and implement a method to measure r, the ratio of the marginal social value to the marginal private value of expertise. This can be decomposed into three sufficient statistics: traders’ average profits, the fraction of bad assets among traded assets and the elasticity of good assets traded with respect t...
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ژورنال
عنوان ژورنال: The Journal of Finance
سال: 2018
ISSN: 0022-1082
DOI: 10.1111/jofi.12606