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- W3123357650 abstract "I consider bilateral trade between a seller and a buyer with private valuations. The seller makes a take-it-or-leave-it price offer. If the seller observes the buyerʼs valuation (symmetric information), bilateral trade is trivially efficient. If the seller cannot observe the valuation (asymmetric information), bilateral trade is inefficient. This bilateral trading game is embedded into a large matching market. In the steady-state equilibrium of the market game, the relation between the informational regime and efficiency is inverted: With small frictions efficiency obtains if information is asymmetric. If information is symmetric, however, the trading outcome can be very inefficient—even if frictions vanish." @default.
- W3123357650 created "2021-02-01" @default.
- W3123357650 creator A5083903956 @default.
- W3123357650 date "2012-09-01" @default.
- W3123357650 modified "2023-09-26" @default.
- W3123357650 title "Asymmetric information in bilateral trade and in markets: An inversion result" @default.
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- W3123357650 doi "https://doi.org/10.1016/j.jet.2012.05.021" @default.
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