Tuesday, 13 May 2008

Andrea Prat (joint with Amil Dasgupta) ''Information aggregation in financial markets with career concerns'', forthcoming in JET

A paper by Andrea Prat (joint with Amil Dasgupta) Information aggregation in financial markets with career concerns, is forthcoming in the Journal of Economic Theory.

Abstract: What are the equilibrium features of a dynamic financial market in which traders care about their reputation for ability? The authors modify a standard sequential trading model to include traders with career concerns. They show that this market cannot be informationally efficient: there is no equilibrium in which prices converge to the true value, even after an infinite sequence of trades. They characterize the most revealing equilibrium of this game and show that an increase in the strength of the traders’ reputational concerns has a negative effect on the extent of information that can be revealed in equilibrium but a positive effect on market liquidity.


Anonymous said...

Hi all

Im a newbie here, although i have been watching on the sidelines for a little while.
Im a part time librarian, love baking and my wesie Daisy. I also am way too excited about Christmas for words!!
I cant wait to get on here some more and 'meet' lots of new people!

thanks, Dennis from [url=http://www.myonlinepayday.com]My Online Payday[/url] website!

Anonymous said...


Just saying hello while I read through the posts

hopefully this is just what im looking for, looks like i have a lot to read.

Anonymous said...

Hi, My name is Suzie from SCF. I'm out for any girls interested in submitting images and short articles of their painted furniture, [url=http://www.shabby-chic-furnishings.co.uk]distressed furniture[/url], and vintage furniture in general. If any of you fit the bill please visit: www.shabby-chic-furnishings.co.uk