No trade in Russian fossils?

No trade

We investigate a common value bilateral bargaining model with two sided private information and no aggregate uncertainty. A seller owns an asset whose common valuation is a deterministic function of the two traders’private signals. We …rst establish a no-trade theorem for this environment, and proceed to study the e¤ect of the asset valuation structure and the trading mechanism on extent to whi...

Gravity Model of Trade and Russian Exports

No-Trade in the Laboratory

We test the no-trade theorem in a laboratory financial market where subjects can trade an asset whose value is unknown. Subjects receive clues on the asset value and then set a bid and an ask at which they are willing to buy or to sell from the other participants. In treatments with no gains from trade, we should observe no trading activity, whereas, in treatments with gains, trade becomes theo...

The No Trade Principle in General Environments ∗

The no trade principle asserts that risk-neutral agents are not prepared to trade if and only if a common prior exists. The purpose of this article is to provide general versions of this duality principle. We argue from a strategic viewpoint that completely regularity is the most general and natural topological assumption that we should make on the state space. We consider two cases. In the fir...

No trade in financial markets with uncertainty

In this paper a Radner economy is considered with Uncertainty, modeled by means of the Choquet Expected Utility. Agents are split into two categories: optimists, who hold a concave capacity, and pessimists, who hold a convex one. A no trade theorem is stated and proved under the assumption of common beliefs with uncertainty.