Dow, James; Werlang, Sérgio Ribeiro da Costa; … - FGV/EPGE Escola Brasileira de Economia e Finanças, … - 1990
We study the proposition that if it is common knowledge that en allocation of assets is ex-ante pareto efficient, there is no further trade generated by new information. The key to this result is that the information partitions and other characteristics of the agents must be common knowledge and...