Asset Opacity and Liquidity

Research, Preprint English OPEN
Stenzel, A.; Wagner, W.B.;
  • Publisher: EBC
  • Subject: endogenous information acquisition | endogenous information acquisition; opacity; asset liquidity | endogenous information acquisition;opacity;asset liquidity | opacity | asset liquidity
    mesheuropmc: health care economics and organizations

Abstract: We consider a model of private information acquisition in which the cost of information depends on an asset's opacity. The model generates a hump-shaped relationship between opacity and the equilibrium amount of private information. In particular, the incentiv... View more
  • References (12)
    12 references, page 1 of 2

    B.I. Carlin, S. Kogan, and R. Lowery. Trading complex assets. The Journal of Finance, 2013.

    T. Cordella and E.L. Yeyati. Financial opening, deposit insurance, and risk in a model of banking competition. European Economic Review, 46(3):471{485, 2002.

    T.V. Dang, G. Gorton, and B. Holmstrom. The information sensitivity of a security. working paper, 2013a.

    T.V. Dang, G. Gorton, B. Holmstrom, and G. Ordon~ez. Banks as secret keepers. working paper, 2013b.

    E. Farhi and J. Tirole. Information, tranching and liquidity. Technical report, Institut d'Economie Industrielle (IDEI), Toulouse, 2013.

    F. Fecht and W. Wagner. The marketability of bank assets and managerial rents: implications for nancial stability. Technical report, Discussion Paper, Series 2: Banking and Financial Supervision, 2007.

    G. Gorton and A. Metrick. Securitization. Technical report, National Bureau of Economic Research, 2012.

    T.R. Kaplan. Why banks should keep secrets. Economic Theory, 27(2):341{357, 2006.

    C. Monnet and E. Quintin. Rational opacity. working paper, 2013.

    D.P. Morgan. Rating banks: Risk and uncertainty in an opaque industry. The American Economic Review, 92(4):874{888, 2002.

  • Metrics
    No metrics available
Share - Bookmark