Trading motives in asset markets

Zijian Wang

I study how trading motives in asset markets affect equilibrium outcomes and welfare. I focus on two types of trading motives - informational and allocational. I show that while a fully separating equilibrium is the unique equilibrium when trading motives are known, multiple equilibria exist when trading motives are unknown. Moreover, forcing traders to reveal their trading motives may harm welfare. I also use this model to study how an asset market may exit a fire sale equilibrium and how government programs may eliminate private information and improve agents' welfare.

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Year of publication:	2019
Authors:	Wang, Zijian
Publisher:	London, Ontario, Canada : Department of Economics, Social Science Centre, Western University
Subject:	asset markets \| private information \| competitive search \| government intervention \| Theorie \| Theory \| Asymmetrische Information \| Asymmetric information \| Finanzmarkt \| Financial market \| Wertpapierhandel \| Securities trading

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Extent:	1 Online-Ressource (circa 51 Seiten) Illustrationen
Series:	Research report / Department of Economics, Social Science Centre, The University of Western Ontario. - London, Ont. : [Verlag nicht ermittelbar], ZDB-ID 2256392-1. - Vol. # 2019, 1 (January 2019)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/202455 [Handle]
Classification:	G12 - Asset Pricing ; D82 - Asymmetric and Private Information ; D83 - Search, Learning, Information and Knowledge ; G18 - Government Policy and Regulation
Source:	ECONIS - Online Catalogue of the ZBW

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