Costs and Benefits of Dynamic Trading in a Lemons Market
نویسندگان
چکیده
We study a dynamic market with asymmetric information that creates the lemons problem. We compare effi ciency of the market under different assumptions about the timing of trade. We identify positive and negative aspects of dynamic trading, describe the optimal market design under regularity conditions and show that continuous-time trading can be always improved upon.
منابع مشابه
Working Paper No. 11-36 Trading Dynamics in Decentralized Markets with Adverse Selection
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