Profitable Informed Trading in a Simple General Equilibrium Model of Asset Pricing

This paper presents a simple general equilibrium model of asset pricing in which profitable informed trading can occur without any "noise" added to the model. It shows that models of profitable informed trading must restrict the portfolio choices of uninformed traders: in particular, they cannot buy the market portfolio. In this model, profitable informed trading lowers the welfare of all agents when compared across steady states

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Year of publication:	[2021]
Authors:	Dow, James ; Gorton, Gary B.
Publisher:	[S.l.] : SSRN
Subject:	Theorie \| Theory \| CAPM \| Börsenkurs \| Share price \| Rationale Erwartung \| Rational expectations \| Informationsökonomik \| Economics of information \| Allgemeines Gleichgewicht \| General equilibrium

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Extent:	1 Online-Ressource (61 p)
Series:	NBER Working Paper ; No. w4315
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 1993 erstellt
Source:	ECONIS - Online Catalogue of the ZBW

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