Trade and the revelation of information through prices and direct disclosure

This article analyzes the volume of trade in a multiperiod noisyrational expectations model. When traders receive private signalsat the first trading date and are allowed a second round oftrade, two type of equilibria exist. In the first, traders donot learn about the average private signal from the second roundof trade, and all trade takes place at the first date. In thesecond, traders do learn from the second round, and trade thustakes places at both the first and second dates. The articlecharacterizes volume when a public signal is disclosed at thesecond date.