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Eliciting traders' knowledge in \\"frictionless\\" asset market


Abstract: Intuitively, a patient trader should be able to make his trading partners compete to reveal whatever information is relevant to their transactions with him. This possibility is examined in the context of a model resembling that of Gale (1986). The main result is that, under assumptions having to do with asset structure and spanning, incentive-compatible elicitation of trading partners? knowledge is feasible.

Keywords: Game theory;

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Provider: Federal Reserve Bank of Minneapolis

Part of Series: Staff Report

Publication Date: 1991

Number: 144