Information aggregation in competitive markets | Zendy

Siga Lucas | Zendy; Mihm Maximilian | Zendy

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Information aggregation in competitive markets

Author(s) -

Siga Lucas,

Mihm Maximilian

Publication year - 2021

Publication title -

theoretical economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 4.404

H-Index - 32

eISSN - 1555-7561

pISSN - 1933-6837

DOI - 10.3982/te3559

Subject(s) - aggregate (composite) , property (philosophy) , betweenness centrality , population , microeconomics , information aggregation , mathematical economics , economics , computer science , mathematics , data mining , philosophy , materials science , demography , epistemology , combinatorics , sociology , centrality , composite material

We study when equilibrium prices can aggregate information in an auction market with a large population of traders. Our main result identifies a property of information—the betweenness property—that is both necessary and sufficient for information aggregation. The characterization provides novel predictions about equilibrium prices in complex, multidimensional environments.

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