Can financial markets aggregate information dispersed among traders and allow traders to achieve their target inventories? To examine this question, we study a model of a double auction among finitely many traders who are all rational, strategic, risk averse, and informed about the value of a...

Focusing on homogeneous beliefs, we can distinguish two commonly shared ideas that, i) the competition between informed traders destroys their trading profits, ii) trading with a noisy signal brings about a loss in the expected profits. So far, it has been proved in the latter framework, that...