Existence of linear equilibria in the Kyle model with partial correlation and two risk neutral traders.
Heliyon
; 9(7): e17574, 2023 Jul.
Article
em En
| MEDLINE
| ID: mdl-37449171
ABSTRACT
We study a generalization of the static model of [11] with two risk neutral insiders to the case where each insider is partially informed about the value of the stock. First, we provide a necessary and sufficient condition for the uniqueness of the linear Bayesian equilibrium. Specifically, we show that, when the covariance matrix of the errors terms of the insiders' signals, is not singular, the linear Bayesian equilibrium is not unique. Then, we carry out a comparative statics analysis.
Texto completo:
1
Coleções:
01-internacional
Base de dados:
MEDLINE
Tipo de estudo:
Etiology_studies
/
Risk_factors_studies
Idioma:
En
Revista:
Heliyon
Ano de publicação:
2023
Tipo de documento:
Article
País de afiliação:
Kuait
País de publicação:
ENGLAND
/
ESCOCIA
/
GB
/
GREAT BRITAIN
/
INGLATERRA
/
REINO UNIDO
/
SCOTLAND
/
UK
/
UNITED KINGDOM