Repeated Trading: Transparency and Market Structure

• 成果类型: Article
• 署名作者: Kaya, Ayca; Roy, Santanu
• 署名单位: University of Miami; Southern Methodist University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20230114
• 发表日期: 2024
• 页码: 2388-2435
• 关键词: Folk theorem; games; INFORMATION; collusion

摘要

We analyze the effect of transparency of past trading volumes in markets where an informed long-lived seller can repeatedly trade with short-lived uninformed buyers. Transparency allows buyers to observe previously sold quantities. In markets with intraperiod monopsony ( single buyer each period), ), transparency reduces welfare if the ex ante expected quality is low but improves welfare if the expected quality is high. The effect is reversed in markets with intraperiod competition ( multiple buyers each period). ) . This discrepancy in the efficiency implications of transparency is explained by how buyer competition affects the seller's ability to capture rents, , which, , in turn, , influences market screening. ( JEL D40, D82, D83, G14, L15)