Siddiqi, Hammad (2010): Information transmission and the emergence of a peculiar trading facility in certain emerging markets.
Download (345kB) | Preview
A peculiar carry over transaction facility has been associated with emerging markets of India and Pakistan. We show that the trading facility can be considered a market response to the information gaps in these markets. Information can be credibly transmitted through this trading facility. Hence, the emergence of such a trading facility is, perhaps, an example of a creative market response to information problems.
|Item Type:||MPRA Paper|
|Original Title:||Information transmission and the emergence of a peculiar trading facility in certain emerging markets|
|Keywords:||Information Asymmetry; Information Transmission; Emerging Markets; Perfect Bayesian Equilibria; Badla Finance|
|Subjects:||N - Economic History > N2 - Financial Markets and Institutions > N20 - General, International, or Comparative
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
G - Financial Economics > G1 - General Financial Markets > G10 - General
D - Microeconomics > D0 - General > D00 - General
|Depositing User:||Hammad Siddiqi|
|Date Deposited:||16. Jul 2010 12:52|
|Last Modified:||11. Feb 2013 18:55|
Akerlof, George A. (1970), “The Market for ‘Lemons’: Quality Uncertainty and Market Mechanism”, Quarterly Journal of Economics, Vol. 84, 3, 488-500.
Ben-Shahar, D. (2004), “Productive Signaling Equilibria and Over-Maintenance: An Application to Real Estate Market”, The Journal of Real Estate Finance and Economics, 28, 255-271.
Berkman, H. and Eleswarapu, Vinket R. (1998), “Short-term Traders and Liquidity: A Test using Bombay Stock Exchange Data”, Journal of Financial Economics, 47, 339- 355.
Bhattacharya, S. (1979), “Imperfect Information, Dividend Policy, and ‘the Bird in the Hand Fallacy’ ”, Bell Journal of Economics, 10, 259-270.
Black, B. (2001), “The Legal and Institutional Preconditions for Strong Stock Markets”, UCLA Law Review, 48, 781-855.
Choi, J. P. (2001). Planned Obsolescence as a Signal of Quality, International Economic Journal 15, 59–79
Echeverri-Gent, J. (2002), “Politics of Market Microstructure: Reforming India’s Equity Market Institutions”, Paper presented at the annual meeting of American Political Science Association, http://www.allacademic.com/meta/p65338_index.html.
John, K. and William J. (1985), “Dividends, Dilution and Taxes”, Journal of Finance, 40, 1053-1070.
Khwaja, A., and Mian, A. (2005), “Unchecked Intermediaries: Price Manipulation in an Emerging Market”, Journal of Financial Economics,
Leland, H. and Pyle, D. (1977), “Information Asymmetries, Financial Structure, and Financial Intermediation”, Journal of Finance, 32, 371-387.
Lutz, N. A. (1989). Warranties as Signals under Consumer Moral Hazard, Rand Journal of Economics 20, 239–255
Meyers, S. and Majluf, N. (1984), “Corporate Financing and Investment Decisions when Firms have Information that Investors do not have”, Journal of Financial Economics, 13, 187-221.
Milgrom, P., and J. Roberts. (1986). Prices and Advertising Signals of Product Quality, Journal of Political Economy 94, 796–821
Miller, Merton H., and Rock, K. (1985), “Dividend Policy under Asymmetric Information”, Journal of Finance, 40, 1031-1051.
Somanathan, T. V. (1998), Derivatives. Tata-McGraw Hill Publishing Company
Spence M. (1973), “.Job Market Signaling”, Quarterly Journal of Economics 87, 355-374
Riley, J. (2001), “Silver Signals: Twenty-Five Years of Screening and Signaling”, Journal of Economic Literature 39(2), 432-478.
Ross, Stephen A. (1977), “The Determination of Financial Structure: The Incentive Signaling approach”, Bell Journal of Economics, 8, 23-40.
Vermaelen, T. (1984), “Repurchase Tender Offer, Signaling, and Managerial Incentives”, Journal of Financial and Quantitative Analysis, 163-181.