Learning in crowded markets

نویسندگان
چکیده

منابع مشابه

Learning in Crowded Markets

We develop a model of capital reallocation to analyze whether the presence of more arbitrageurs improves capital allocation and welfare. While trades can become crowded due to imperfect information and externalities, arbitrageurs can devote resources to flexibly learn about the number of earlier entrants. Above a threshold, increasing the number of arbitrageurs does not affect capital allocatio...

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ژورنال

عنوان ژورنال: Journal of Economic Theory

سال: 2019

ISSN: 0022-0531

DOI: 10.1016/j.jet.2019.08.006