1. Inicio keyboard_arrow_right
  2. Investigaciones


Artículo en revista académica

calendar_month Publicación: 11/12/2023

Information, Market Power and Price Volatility

Autor: Tibor Heumann, Dirk Bergemann, Stephen Morris

Profesor Relacionado: Tibor Heumann

Abstract: We consider demand function competition with a finite number of agents and private information. We show that any degree of market power can arise in the unique equilibrium under an information structure that is arbitrarily close to complete information. In particular, regardless of the number of agents and the correlation of payo§ shocks, market power may be arbitrarily close to zero (so we obtain the competitive outcome) or arbitrarily large (so there is no trade in equilibrium). By contrast, price volatility is always less than the

Fuente: The RAND Journal of Economics

Comparte esta publicación