Information and Asymmetric Information
Resources and articles on information and asymmetric information.
How Markets Use Information To Set Prices
"How Markets Use Information To Set Prices" looks at how different markets use information and beliefs to set prices, and how we can conversely gain information from looking at price changes. By using a real-life example we can see how information plays a role in the price of a contingent contract and how we can deduce from that price the probability of an event occuring.
"How Markets Use Information To Set Prices" looks at how different markets use information and beliefs to set prices, and how we can conversely gain information from looking at price changes. By using a real-life example we can see how information plays a role in the price of a contingent contract and how we can deduce from that price the probability of an event occuring.