Preferences, common knowledge and speculative trade
Autor(a) principal: | |
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Data de Publicação: | 1990 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/417 |
Resumo: | 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 that contracts, or asset markets, must be complete. It does not depend on learning, on 'lemons' problems, nor on agreement regarding beliefs and the interpretation of information. The only requirement on preferences is state-additivity; in particular, traders need not be risk-averse. We also prove the converse result that 'no-trade results' imply that traders' preferences can be represented by state-additive utility functions. We analyze why examples of other widely studied preferences (e.g., Schmeidler (1989)) allow 'speculative' trade. |
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Dow, JamesWerlang, Sérgio Ribeiro da CostaMadrigal, VicenteEscolas::EPGEFGV2008-05-13T15:23:48Z2008-05-13T15:23:48Z1990-010104-8910http://hdl.handle.net/10438/417We 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 that contracts, or asset markets, must be complete. It does not depend on learning, on 'lemons' problems, nor on agreement regarding beliefs and the interpretation of information. The only requirement on preferences is state-additivity; in particular, traders need not be risk-averse. We also prove the converse result that 'no-trade results' imply that traders' preferences can be represented by state-additive utility functions. We analyze why examples of other widely studied preferences (e.g., Schmeidler (1989)) allow 'speculative' trade.engEscola de Pós-Graduação em Economia da FGVEnsaios Econômicos;149Todo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveisinfo:eu-repo/semantics/openAccessPreferences, common knowledge and speculative tradeinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleEconomiaComércioEspeculaçãoEconomiareponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVORIGINAL000075109.pdf000075109.pdfapplication/pdf730508https://repositorio.fgv.br/bitstreams/adb2aadb-30b4-48d6-bc74-e5c3cde8e31e/download2e554c64beb619539e4dc7a605cfc102MD51TEXT000075109.pdf.txt000075109.pdf.txtExtracted texttext/plain32887https://repositorio.fgv.br/bitstreams/6139141f-0da7-499d-96cf-df2b03c40eba/download195e5ea0f292138cda14fb0156890e13MD56THUMBNAIL000075109.pdf.jpg000075109.pdf.jpgGenerated Thumbnailimage/jpeg2141https://repositorio.fgv.br/bitstreams/7e21d221-68d0-40f6-af4c-82581230cb17/download142f52fcc628c2562f73f82c55f0fec8MD5710438/4172023-11-09 16:24:49.683open.accessoai:repositorio.fgv.br:10438/417https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-09T16:24:49Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
Preferences, common knowledge and speculative trade |
title |
Preferences, common knowledge and speculative trade |
spellingShingle |
Preferences, common knowledge and speculative trade Dow, James Economia Comércio Especulação Economia |
title_short |
Preferences, common knowledge and speculative trade |
title_full |
Preferences, common knowledge and speculative trade |
title_fullStr |
Preferences, common knowledge and speculative trade |
title_full_unstemmed |
Preferences, common knowledge and speculative trade |
title_sort |
Preferences, common knowledge and speculative trade |
author |
Dow, James |
author_facet |
Dow, James Werlang, Sérgio Ribeiro da Costa Madrigal, Vicente |
author_role |
author |
author2 |
Werlang, Sérgio Ribeiro da Costa Madrigal, Vicente |
author2_role |
author author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Dow, James Werlang, Sérgio Ribeiro da Costa Madrigal, Vicente |
dc.subject.area.por.fl_str_mv |
Economia |
topic |
Economia Comércio Especulação Economia |
dc.subject.bibliodata.por.fl_str_mv |
Comércio Especulação Economia |
description |
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 that contracts, or asset markets, must be complete. It does not depend on learning, on 'lemons' problems, nor on agreement regarding beliefs and the interpretation of information. The only requirement on preferences is state-additivity; in particular, traders need not be risk-averse. We also prove the converse result that 'no-trade results' imply that traders' preferences can be represented by state-additive utility functions. We analyze why examples of other widely studied preferences (e.g., Schmeidler (1989)) allow 'speculative' trade. |
publishDate |
1990 |
dc.date.issued.fl_str_mv |
1990-01 |
dc.date.accessioned.fl_str_mv |
2008-05-13T15:23:48Z |
dc.date.available.fl_str_mv |
2008-05-13T15:23:48Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/417 |
dc.identifier.issn.none.fl_str_mv |
0104-8910 |
identifier_str_mv |
0104-8910 |
url |
http://hdl.handle.net/10438/417 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.ispartofseries.por.fl_str_mv |
Ensaios Econômicos;149 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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