VALUE OF INFORMATION IN COMPETITIVE ECONOMIES WITH INCOMPLETE MARKETS

• 成果类型: Article
• 署名作者: Gottardi, Piero; Rahi, Rohit
• 署名单位: European University Institute; Universita Ca Foscari Venezia; University of London; London School Economics & Political Science
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12041
• 发表日期: 2014
• 页码: 57-81
• 关键词: improving financial innovation; social value

摘要

We study the value of public information in competitive economies with incomplete markets. We show that generically the welfare effect of a change in the information available prior to trading can be in any direction: There exist changes in information that make all agents better off and changes for which all agents are worse off. In contrast, for any change in information, a Pareto improvement is feasible, that is, attainable by a planner facing the same informational and asset market constraints as agents. In this sense, the response of competitive markets to changes in information is typically not socially optimal.