We study how the combination of market structure and the asymmetries in learn- ing technologies affects trade in a product market. In this market, a new product of unknown quality is introduced to challenge an existing product of known quality. We show that market efficiency is achieved both...

This volume includes the five lecture courses given at the CIME-EMS School on "Stochastic Methods in Finance" held in Bressanone/Brixen, Italy 2003. It deals with innovative methods, mainly from stochastic analysis, that play a fundamental role in the mathematical modelling of finance and...