We consider the effect of asymmetric information on price formation process in a financial market where private … information is held by a market maker. A Byesian game is proposed in which there is price competition between two market makers … with two different information partition. …

In a differential information economy with quasi-linear utilities, monetary transfers facilitate the fulfillment of …

Asymmetric information concerns either commodities or mutually exclusive states of the world. The notion of competitive … asymmetric information concerning mutually exclusive states of the world, where it is important whether trades are enforceable … and whether trades occur before or after individuals receive private information. In either case, competitive equilibria …

We study a general model of common-value second-price auctions with differential information. We show that one of the …. Furthermore when bidder has information advantage other bidders cannot make profit. …

In an example, monetary policy can determine the information revealed by prices, and thus it can be effective, even …

We study a class of common-value second-price auctions with differential information. This class of common …-value auctions is characterized by the property that each player's information set is connected with respect to the common value. We … of sophisticated equilibria. Additionally, it is shown that bidder's information advantage over others is rewarded in …

In a game with rational expectations individuals refine their information with the information revealed by strategies … expectations, the information of individuals is essentially summetris: the same profile is also an equilibrium of a game with … symmetric information, and their acts are common knowledge. …

information, and an incomplete asset market. For alternative scenarios, which differ in the information available to consumers and … monetary policy can be effective (i) by modifying the structure of payoffs of assets and (ii) by modifying the information …