Costs and Benefits of Dynamic Trading in a Lemons Market

We study a dynamic market with asymmetric information that induces the lemons problem. We compare efficiency of the market under different assumption about the timing of trade. We show that there generally exist conditions under which efficiency can be improved by temporarily closing the market as compared to continuous trading opportunities. Full paper and most current abstract available here: http://www.stanford.edu/~skrz/Dynamic_Lemons.pdf

©2012 Microsoft Corporation. All rights reserved.
  • SpeakerAndrzej Skrzypacz
  • HostAlex Wolitsky
  • AffiliationStanford
  • Duration01:09:45
  • Date recorded20 June 2012
  • Share
    Share this page on Facebook
    Share this page on Twitter
    Share this page on LinkedIn
    E-mail this page
    RSS feeds