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no trade theorems
Book chapter

no trade theorems

The New Palgrave Dictionary of Economics, Palgrave Macmillan, 1
2010

Abstract

asset markets demand shocks no trade theorems trade volume uncertainty
No trade theorems represent a class of results showing that, under certain conditions, trade in asset markets between rational agents cannot be explained on the basis of differences in information alone. They pose a challenge to provide a theoretical justification of the high trade volumes observed in financial markets. This article overviews existing no trade theorems and discusses alternative approaches to modelling information-based trade.

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