Download or read book The International Role of Prices written by Sanford J.. Grossman and published by . This book was released on 1989 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Marketing Information Systems written by Lee E. Preston and published by . This book was released on 1964 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Informational Role of Prices written by Leonard J. Mirman and published by . This book was released on 2017 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the informational role of prices. To that end, we consider the framework of a dominant firm with a competitive fringe. When the competitive fringe is large enough, there exists a unique fully revealing equilibrium, in which the price conveys full information about the quality of the good to uninformed buyers. Deceiving the uninformed buyers by charging a high price and mimicking a high quality is not profitable when the competitive fringe is large enough. Since a higher price triggers more sales on the part of the competitive fringe, residual demand and thus profits are reduced. We also study the effect of asymmetric information and learning on the equilibrium outcomes. More uninformed buyers increases the price, reduces the quantity sold by the dominant firm, but increases the quantity sold by the competitive fringe.
Download or read book The Informational Role of Prices written by Eirik Romstad and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper extends the framework of prices beyond the standard market setting to incorporate public goods and natural resources. These are settings where one does not usually think of market solutions. Core theory has established that price-taking behaviour by both suppliers and consumers, i.e. the absence of strategic considerations, greatly improves the informational value of prices, and hence of economic equilibria. This also holds when using market-like institutions to allocate resources for public goods. Policy effectiveness in many areas can be improved when agents are induced to reveal, voluntarily and truthfully, their willingness-to-pay or production costs.
Download or read book Prices and Knowledge written by Esteban F. Thomsen and published by Routledge. This book was released on 2002-01-22 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growth of information economics has lead to a substantial re-consideration of the role of prices. Instead of the conventional neo-classical view of prices as straightforward indicators of scarcity, information economics emphasises that prices can be sources from which agents infer information and means by which they communicate. Prices and Knowledge analyses different theoretical approaches to the role of prices in situations of imperfect information. It shows that whilst the `informational efficiency' approach of Grossman and Stiglitz and the `bounded rationality theory' of Nelson and Simon are useful, neither goes far enough in considering situations of disequilibrium.
Download or read book The Informational Role of Prices written by Anat R. Admati and published by . This book was released on 1991 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Online Appendix written by Leonard J. Mirman and published by . This book was released on 2017 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the online appendix to The Informational Role of Prices by Leonard J. Mirman and Marc Santugini.
Download or read book On the Informational Role of Prices in Financial Markets written by Xiaojuan (Grace) Hu and published by ProQuest. This book was released on 2008 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine how an increase in the number of information sources affects traders' welfare and their information acquisition decisions. We show that as the number of information sources increases, the informativeness of market prices decreases. As a result, more traders choose to acquire information. In addition, traders' ex ante utilities decrease.
Download or read book The Informational Role of Prices written by Sanford J. Grossman and published by MIT Press (MA). This book was released on 1989 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: A uniform framework for understanding how prices convey information in securities markets.
Download or read book Individuals Neglect the Informational Role of Prices written by Fernando Chague and published by . This book was released on 2018 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Informational Role of Asset Prices written by Zvi Bodie and published by . This book was released on 1995 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper illustrates the role played by financial markets in providing information about the future volatility--that is, the degree of uncertainty--of economic variables such as interest rates, exchange rates, commodity prices, and stock, bond, and other security prices. It has two basic goals: (1) to show the importance of volatility for all sorts of policy decisions in the private and public sectors of the economy; and (2) to show how ex ante estimates of future volatility can be extracted from the prices of securities.
Download or read book The Informational Role of Spot Prices and Inventories written by James L. Smith and published by . This book was released on 2016 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the role that spot markets and physical inventories play in revealing to uninformed traders the expectations of informed traders. Although many papers investigate potential mechanisms by which futures markets may disseminate such information, the role of spot markets has not been examined in comparable detail. Because the incentive for speculative trading in futures contracts stems from the failure of spot markets to eliminate differences in beliefs regarding future market conditions, the scope for speculative trading in the futures market is therefore determined, but also limited, by the extent to which spot market transactions disseminate private information. Using a rational expectations approach, we show that equilibrium differences in beliefs are determined by specific characteristics of the underlying commodity, including storage costs, the amplitude of unexpected demand and supply shocks, the accuracy of information acquired by informed investors, the numbers of informed and uninformed investors, and the elasticity of demand and supply.
Download or read book The Informational Role of Asset Prices written by Zvi Bodie and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: An important function of the financial system is to serve as a key source of information that helps coordinate decentralized decision-making in various sectors of the economy. Households and investors use interest rates, futures prices and security prices in making their consumption-saving decisions and portfolio allocation decisions. Interest rates and prices provide important signals to managers of firms in their selection of investment projects and financings. This paper illustrates the role played by financial markets in providing information about the future volatility-that is, the degree of uncertainty-of economic variables such as interest rates, exchange rates, commodity prices, and stock, bond and other security prices. It has two basic goals: (1) to show the importance of volatility for all sorts of policy decisions in the private and public sectors of the economy; and (2) to show how ex ante estimates of future volatility can be extracted from the prices of securities.
Download or read book Vague Preferences Noisy Markets and Other Parables Concerning the Informational Role of Prices written by Vicente Madrigal and published by . This book was released on 1993 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Informational Role of Product Trade Ins for Pricing Durable Goods written by Ohjin Kwon and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This research theorizes that sellers of durable goods can utilize inferences about the buyer's willingness to pay based not only on her decision to trade in the old good but also on its characteristics. We find empirical support for this theory using transaction data for new car purchases. The results support the notion that dealers infer a higher willingness to pay and charge higher prices to consumers who trade in a used vehicle than to those who do not. We also find that dealers charge even higher prices to those consumers who trade in used cars that are similar to the new one.
Download or read book Adam Smith s Political Philosophy written by Craig Smith and published by Routledge. This book was released on 2006-01-16 with total page 251 pages. Available in PDF, EPUB and Kindle. Book excerpt: When Adam Smith published his celebrated writings on economics and moral philosophy he famously referred to the operation of an 'invisible hand'. Adam Smith’s Political Philosophy makes visible this hand by examining its significance in Smith’s political philosophy and relating it to similar concepts used by other philosophers, thus revealing a distinctive approach to social theory that stresses the importance of the unintended consequences of human action. The first book to examine the history of Smith’s political philosophy from this perspective, this work introduces greater conceptual clarity to the discussion of the invisible hand and the related notion of unintended order in the work of Smith, as well as in political theory more generally. By examining the application of spontaneous order ideas in the work of Smith, Hume, Hayek and Popper, this important volume traces similarities in approach, and from these constructs a conceptual, composite model of an invisible hand argument. While setting out a clear framework of the idea of spontaneous order, the book also builds the case for using this as an explanatory social theory, with chapters on its application in the fields of science, moral philosophy, law and government.
Download or read book Advanced Asset Pricing Theory written by Ma Chenghu and published by World Scientific Publishing Company. This book was released on 2011-01-03 with total page 816 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a broad introduction of modern asset pricing theory with equal treatments for both discrete-time and continuous-time modeling. Both the no-arbitrage and the general equilibrium approaches of asset pricing theory are treated coherently within the general equilibrium framework.The analyses and coverage are up to date, comprehensive and in-depth. Topics include microeconomic foundation of asset pricing theory, the no-arbitrage principle and fundamental theorem, risk measurement and risk management, sequential portfolio choice, equity premium decomposition, option pricing, bond pricing and term structure of interest rates. The merits and limitations are expounded with respect to allocation and information market efficiency, along with the classical expectations hypothesis concerning the information content of yield curve and bond prices. Efforts are also made towards the resolution of several well-documented puzzles in empirical finance, which include the equity premium puzzle, the risk free rate puzzle, and the money-ness bias phenomenon of Black-Scholes option pricing model.The theory is self-contained and unified in presentation. The inclusion of proofs and derivations to enhance the transparency of the underlying arguments and conditions for the validity of the economic theory makes an ideal advanced textbook or reference book for graduate students specializing in financial economics and quantitative finance. The explanations are detailed enough to capture the interest of those curious readers, and complete enough to provide necessary background material needed to explore further the subject and research literature.
