Asset Opacity and Liquidity

Research, Preprint English OPEN
Stenzel, A.; Wagner, W.B.;
(2013)
  • 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
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