Symmetric ignorance: The cost of anonymous lemons |
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Authors: | Amar Bhidé |
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Affiliation: | Harvard Business School, Boston, Massachusetts, USA |
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Abstract: | Rules that restrict information required in negotiated private transactions have spurred a vast increase in the scope of anonymous financial markets, particularly in the United States. The subtle costs of the information-restricting rules raise questions about the social value of “completing” anonymous markets that would not naturally survive and did not historically exist. |
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Keywords: | information asymmetry liquidity regulation securities markets securitization |
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