Asymmetric Information and Intermediation Chains

• 成果类型: Article
• 署名作者: Glode, Vincent; Opp, Christian
• 署名单位: University of Pennsylvania
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20140662
• 发表日期: 2016
• 页码: 2699-2721
• 关键词: Financial intermediation; middlemen; MARKET; mechanisms

摘要

We propose a parsimonious model of bilateral trade under asymmetric information to shed light on the prevalence of intermediation chains that stand between buyers and sellers in many decentralized markets. Our model features a classic problem in economics where an agent uses his market power to inefficiently screen a privately informed counterparty. Paradoxically, involving moderately informed intermediaries also endowed with market power can improve trade efficiency. Long intermediation chains in which each trader's information set is similar to those of his direct counterparties limit traders' incentives to post prices that reduce trade volume and jeopardize gains to trade.