Centralized vs decentralized markets: The role of connectivity

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dc.contributor.authorAlfarano, Simone
dc.contributor.authorBanal-Estañol, Albert
dc.contributor.authorCamacho, Eva
dc.contributor.authorIori, Giulia
dc.contributor.authorKapar, Burcu
dc.contributor.authorRahi, Rohit
dc.contributor.otherUniversitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned2024-11-14T10:10:15Z
dc.date.available2024-11-14T10:10:15Z
dc.date.issued2024-01-14
dc.date.modified2024-11-14T10:09:11Z
dc.description.abstractWe consider a setting in which privately informed agents are located in a network and trade a risky asset with other agents with whom they are directly connected. We compare the performance, both theoretically and experimentally, of a complete network (centralized market) to incomplete networks with differing levels of connectivity (decentralized markets). We show that decentralized markets can deliver higher informational efficiency, with prices closer to fundamentals, as well as higher welfare for mean-variance investors.
dc.format.mimetypeapplication/pdf*
dc.identifierhttps://econ-papers.upf.edu/ca/paper.php?id=1877
dc.identifier.citation
dc.identifier.urihttp://hdl.handle.net/10230/68687
dc.language.isoeng
dc.relation.ispartofseriesEconomics and Business Working Papers Series; 1877
dc.rightsL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.keywordnetworks
dc.subject.keywordheuristic learning
dc.subject.keywordinformational efficiency
dc.subject.keywordexperimental asset markets
dc.subject.keywordBusiness Economics and Industrial Organization
dc.titleCentralized vs decentralized markets: The role of connectivity
dc.title.alternative
dc.typeinfo:eu-repo/semantics/workingPaper

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