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7 Information Asymmetries on Financial Markets

  • Thorsten Hens
  • Marc Oliver Rieger
Chapter
  • 436 Downloads
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

Demand of consumer 1
$$\displaystyle \begin{aligned} \begin {array}{c} \max _{\theta _1^1,\theta _2^1} \; \ln (x_0^1) + \frac {1}{2} \ln (x_1^1) + \frac {1}{2} \ln (x1_2^1) \\ x_0^1 + q_1 \theta _1^1 + q_2 \theta _2^1 = 1 \\ x_1^1 = \theta _1^1, \; x_2^1 \\ \implies x_0^1 = \frac {1}{2}, \; x_1^1 = \frac {1}{4 q_1}, \; x_2^1 = \frac {1}{4q_2} \end {array} \end{aligned} $$

References

  1. [HST97]
    Chiaki Hara, Ilya Segal, and Steve Tadelis, Solutions manual for” microeconomic theory, mas-colell, whinston, and green”, Oxford University Press, 1997.Google Scholar
  2. [Tir10]
    Jean Tirole, The theory of corporate finance, Princeton University Press, 2010.Google Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  • Thorsten Hens
    • 1
  • Marc Oliver Rieger
    • 2
  1. 1.Department of Banking and FinanceUniversity of ZurichZürichSwitzerland
  2. 2.Department of Business AdministrationUniversity of TrierTrierGermany

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