The role of information in a two-traders market
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Publication:1782777
Abstract: In a very simple stock market, made by only two emph{initially equivalent} traders, we discuss how the information can affect the performance of the traders. More in detail, we first consider how the portfolios of the traders evolve in time when the market is emph{closed}. After that, we discuss two models in which an interaction with the outer world is allowed. We show that, in this case, the two traders behave differently, depending on extbf{i)} the amount of information which they receive from outside; and extbf{ii)}the quality of this information.
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Cited in
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- A quantum-probabilistic paradigm: non-consequential reasoning and state dependence in investment choice
- A phenomenological operator description of dynamics of crowds: escape strategies
- An operatorial model for long-term survival of bacterial populations
- On the negative value of information in informationally inefficient markets: Calculations for large number of traders
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- Information Frictions in Trade
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