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Bargaining under Asymmetric Information

Econometrica, 1984
Summary: This paper investigates two-person bargaining under incomplete information where one player has strictly better information about the potential value of the transaction than the other. The implications of information barriers to trade are explored, and optimal bargaining mechanisms are characterized.
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Asymmetric Information and Options

Review of Financial Studies, 1993
In an extension of the Kyle (1985) model of continuous insider trading, it is shown that asymmetric information can make it impossible to price options by arbitrage. Even when an option would appear to be redundant, its introduction into the market can cause the volatility of the underlying asset to become stochastic.
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Citizen Candidacy With Asymmetric Information

The B.E. Journal of Theoretical Economics, 2006
We extend a simple version of the citizen candidacy model (developed by Osborne-Slivinski (1996) and Besley-Coate (1997)) to an asymmetric information setting, in which the type of a given individual is assumed to be private information. Focusing on a particular class of perfect Bayesian equilibria, we show that there exist only two kinds of equilibria.
Casamatta, Georges   +1 more
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Efficient Financing under Asymmetric Information

The Journal of Finance, 1987
ABSTRACTThis paper characterizes the conditions under which the adverse‐selection problem, which may prevent a firm from issuing securities to finance an otherwise profitable investment, may be costlessly overcome by an appropriate choice of financing strategy. The conditions are specialized when the information asymmetry may be characterized by either
Brennan, Michael J, Kraus, Alan
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Employment With Asymmetric Information

The Quarterly Journal of Economics, 1983
In an economy without informational and other distortions, entrepreneurs and workers can write labor contracts that support a Pareto optimal allocation of resources. This paper is an attempt to characterize contracts when enterpreneurs are better informed about the state of nature than are their workers.
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Asymmetric information contests

European Journal of Political Economy, 1998
Abstract We consider how asymmetries in information affect contest behavior. We find two effects drive behavior-risk and perceptions of an opponent's value. Our results also suggest that the more tractable one-sided asymmetric information contest might be sufficient to capture contest behavior under uncertainty.
Terrance M. Hurley, Jason F. Shogren
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