We consider a spatial model of bank competition to study how the diffusion of information technology affects … in information technology depend on whether or not it weakens the influence of bank–borrower distance on monitoring …

We study the interaction between the inefficiency in the acquisition of private information and trading in financial … markets. We show that, as the cost of information declines, traders over-invest in information acquisition and trade too much … on their private information. We also show that, generically, there exists no policy based on the price of the financial …

. We display a market with asymmetric information where a privately revealing equilibrium obtains in a competitive … framework and where incentives to acquire information are preserved as long as the correlation in traders' valuations is not too … precluded without resorting necessarily to noise traders. The robustness of the results to general information structures is …