Information Sharing and Dynamic Trading∗
نویسندگان
چکیده
This paper develops a dynamic model of trading with asymmetrically informed traders engaging in (and/or a priori experiencing) information sharing about the long-term value of an asset. We show that in the presence of information sharing, the equilibrium price process is affected by the amount of information shared; trading activity and price volatility both cluster at the end of the trading period, and price informativeness is reduced. The previous effects are particularly severe, and generate high private incentives to share long-lived information. Our model predicts a rich variety of new patterns of liquidity, volume and return volatility.
منابع مشابه
Authorization models for secure information sharing: a survey and research agenda
This article presents a survey of authorization models and considers their 'fitness-for-purpose' in facilitating information sharing. Network-supported information sharing is an important technical capability that underpins collaboration in support of dynamic and unpredictable activities such as emergency response, national security, infrastructure protection, supply chain integration and emerg...
متن کاملSupplier Development Activities and Buying Firm’s Performance: An Empirical Investigation of Iranian SMEs
This study attempts to investigate the major antecedent factors that influence manufacturing SMEs intentions toward the implementation of supplier development activities in Iranian SMEs. In order to achieve this objective, the research constructs were developed. The conceptual framework underlying this study was based on the theories of supplier development activities and social capital. These...
متن کاملCedex Discussion Paper Series Networks and Markets the Dynamic Impacts of Information, Matching and Transaction Costs on Trade *
The purpose of this paper is to explore strategic incentives to use trade networks rather than markets and shed light on the dynamic relation between the two distinct trading systems: a formal system of markets and a decentralised system of networks. We investigate the issues in the infinitely repeated multi-player prisoner’s dilemma game with random matching. The existing literature emphasises...
متن کاملDoes Disclosure Lead to Lower Informed Trading and Symmetric Order-follow Shocks in the Tehran Stock Exchange?
In financial markets, the symmetry of information and the homogeneous interpretation of information among traders is one of the main conditions for market efficiency, but these conditions are in fact violated. In this paper first; we accurately estimated the dynamic measures of trades stemming from information asymmetry and diverse opinions among investors indices by a hidden Markov model. Ther...
متن کاملInformation Security in Cross-Enterprise Collaborative Knowledge Work
Collaboration across enterprises is becoming increasingly necessary in today’s competitive marketplace. Such cross-enterprise collaboration requires simultaneously rich knowledge sharing and maximal information security, an often paradoxical accord. Current approaches to information security do not effectively manage this paradox in collaborative knowledge processes that take on an emergent nat...
متن کامل