The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

No Trade Theorems

  • Ricardo Serrano-Padial
Reference work entry


No trade theorems represent a class of results showing that, under certain conditions, trade in asset markets between rational agents cannot be explained on the basis of differences in information alone. They pose a challenge to provide a theoretical justification of the high trade volumes observed in financial markets. This article overviews existing no trade theorems and discusses alternative approaches to modelling information-based trade.


Asset markets Demand shocks No trade theorems Trade volume Uncertainty 

JEL Classifications

C72 D44 D82 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Ricardo Serrano-Padial
    • 1
  1. 1.