We consider competitive markets with asymmetric information. We define a notion of equilibrium that allows individuals to act strategically both as buyers and as sellers. In an example, the wage is common to all types of labor, and it does not reveal information concerning the skill levels of...

We consider competitive markets with asymmetric information. We intro- duce a notion of equilibrium that allows individuals to act strategically both as buyers and as sellers, and we prove that equilibria exist.