Alfarano, SimoneBanal-Estañol, AlbertCamacho, EvaIori, GiuliaKapar, BurcuRahi, RohitUniversitat Pompeu Fabra. Departament d'Economia i Empresa2024-11-142024-11-142024-01-14http://hdl.handle.net/10230/68687We 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.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsCentralized vs decentralized markets: The role of connectivity<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">networks</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">heuristic learning</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">informational efficiency</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">experimental asset markets</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Business Economics and Industrial Organization</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>