Information about sellers' past behavior in the market for lemons

• 成果类型: Article
• 署名作者: Kim, Kyungmin
• 署名单位: University of Miami
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.02.012
• 发表日期: 2017
• 页码: 365-399
• 关键词: Adverse selection; sequential search; Time-on-the-market

摘要

This paper studies the role of time-on-the-market information in dynamic trading environments under adverse selection. I consider a sequential search model in which (informed) sellers receive price offers from (uninformed) buyers and analyze both the case in which buyers receive no information about sellers' trading histories and the case in which buyers observe sellers' time-on-the-market. I analyze how the observability of time-on-the-market influences agents' trading behavior and investigate its welfare implications in both the single-seller environment and the stationary market environment. (C) 2017 Elsevier Inc. All rights reserved.