This paper finds in closed form a noisy rational expectations equilibrium for a class of economies with many risky assets and analyzes the properties of such equilibria. Because of the various ...interactions between the assets, phenomena appear that do not arise in models with a single risky asset. For example, an asset's equilibrium price might be decreasing in its own payoff and/or increasing in its own supply; an asset might be a Giffen good; a higher price for an asset (holding other prices fixed) might be "bad news" for the asset's payoff; and even for assets in fixed supply, uncertainty about other assets' supplies may prevent their prices from being fully revealing.
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Civility is desirable and possible, but can this fragile ideal be guaranteed?The Importance of Being Civiloffers the most comprehensive look at the nature and advantages of civility, throughout ...history and in our world today. Esteemed sociologist John Hall expands our understanding of civility as related to larger social forces--including revolution, imperialism, capitalism, nationalism, and war--and the ways that such elements limit the potential for civility. Combining wide-ranging historical and comparative evidence with social and moral theory, Hall examines how the nature of civility has fluctuated in the last three centuries, how it became lost, and how it was reestablished in the twentieth century following the two world wars. He also considers why civility is currently breaking down and what can be done to mitigate this threat.
Paying particular attention to the importance of individualism, of rules allowing people to create their own identities, Hall offers a composite definition of civility. He focuses on the nature of agreeing to differ over many issues, the significance of fashion and consumption, the benefits of inclusive politics on the nature of identity, the greater ability of the United States in integrating immigrants in comparison to Europe, and the conditions likely to assure peace in international affairs. Hall factors in those who are opposed to civility, and the various methods with which states have destroyed civil and cooperative relations in society.
The Importance of Being Civilis a decisive and sophisticated addition to the discussion of civil society in its modern cultural and historical contexts.
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The past few years have shown that risks in banking can impose significant costs on the economy. Many claim, however, that a safer banking system would require sacrificing lending and ...economic growth. The Bankers’ New Clothes examines this claim and the narratives used by bankers, politicians, and regulators to rationalize the lack of reform, exposing them as invalid. Anat Admati and Martin Hellwig argue that we can have a safer and healthier banking system without sacrificing any of its benefits, and at essentially no cost to society. They seek to engage the broader public in the debate by cutting through the jargon of banking, clearing the fog of confusion, and presenting the issues in simple and accessible terms.
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Strategic Delay in Bargaining Admati, Anat R.; Perry, Motty
The Review of economic studies,
07/1987, Volume:
54, Issue:
3
Journal Article
Peer reviewed
This paper analyses a bargaining model with incomplete information in which the time between offers is an endogenous strategic variable. We find equilibria involving a delay to agreement that is due ...to the use of strategic time delay by bargainers to signal their relative strength. Under some specifications of the parameters, delay is present in the unique sequential equilibrium whose beliefs satisfy one intuitive restriction. This delay does not vanish as the minimal time between offers becomes small.
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In this article we compare two methods for a monopolist to sell information. In a direct sale buyers observe the seller's signal (or noisy versions of it) and subsequently use what they observe to ...make investment decisions. In an indirect sale the seller creates a portfolio based on his private information and then sells shares to the traders. Indirect sale allows the seller to control more effectively the buyers' reactions to the information, but may not allow as much surplus to be extracted as is possible with direct sale. We show how the optimal selling method depends on the extent to which information is revealed by assets' equilibrium prices.
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In this article, we consider the possibility that some liquidity traders preannounce the size of their orders, a practice that has come to be known as "sunshine trading." Two possible effects ...preannouncement might have on the equilibrium are examined. First, since it identifies certain trades as informationless, preannouncement changes the nature of any informational asymmetries in the market. Second, preannouncement can coordinate the supply and demand of liquidity in the market. We show that preannouncement typically reduces the trading costs of those who preannounce, but its effects on the trading costs and welfare of other traders are ambiguous. We also examine the implications of preannouncement for the distribution of prices and the amount of information that prices reveal.
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This article develops a model in which patterns in buy and sell volume, order imbalances, and expected price changes arise endogenously. The model covers cases in which the market maker is ...competitive and is a monopolist. Our results provide an explanation for the existence of patterns in mean returns within the trading day and across trading days.
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