This paper studies competitive equilibria in economies where agents trade in markets for standardized, non-exclusive financial contracts, under conditions of asymmetric information (both of the moral hazard and the adverse selection type). The problems for the existence of competitive equilibria in this framework are identified, and shown to be essentially the same under different forms of asym...

Asymmetry exists among the firms selling homogeneous product in online market. This paper provides a theoretical study on the equilibrium behavior of the firms and the information gatekeeper in a duopoly market with asymmetric sizes of loyal consumers. In equilibrium, the firm with larger number of loyal consumers tends to advertise less frequently but charges a lower average price whenever adv...

The presence of information asymmetry increases the probability that a potential predator will provide liquidity rather than engaging in predatory trading during liquidation by a distressed trader. More information asymmetry is associated with lower expected losses from liquidation for the distressed trader in illiquid markets. There is a negative correlation between the degree of information a...

We analyze the ex ante incentive compatible core for replicated private information economies. We show that any allocation in the core when the economy is replicated sufficiently often is approximately Walrasian for the associated Arrow–Debreu economy.  2004 Elsevier Inc. All rights reserved. JEL classification: C7; C71; D5

Asymmetric information is an important phenomenon in many markets and in particular in insurance markets. Testing for asymmetric information has become a very important issue in the literature in the last two decades. Almost all testing procedures that are used in empirical studies are parametric, which may yield misleading conclusions in the case of misspecification of either functional or dis...