Q2. What are the future works in this paper?
Studying such extensions is an interesting avenue for future research.
Efficiency and Information Transmission in Bilateral Trading
Robert Shimer,Iván Werning +1 more
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TLDR
In this paper, the authors study pairwise trading in the presence of one-sided or two-sided private information and limited commitment, and show that when one trader's information is relevant for the other trader's value of the asset, optimal trading arrangements may necessarily conceal the traders' information.About:
This article is published in Review of Economic Dynamics.The article was published on 2019-07-01 and is currently open access. It has received 3 citations till now. The article focuses on the topics: Trading turret & Electronic trading.read more
Figures
Figure 1: Regions of the parameter space in which different types of veto incentive compatible mechanisms are trade-maximizing. The details of the mechanisms are given in Proposition 7. 
Figure 2: Trading Probability with α = 3/4. The solid line shows the trading probability under the trade-maximizing veto incentive compatible mechanism, the solution to problem (7). The dashed line imposes the additional constraint that the mechanism is fully-revealing, the solution to problem (9). 
Figure 3: The set of feasible payoffs with 2-sided private information. The figure assumes the payoff structure in Section 5.1 with α = 0.6 and γ = 0.2. The lightest shaded area is the set of payoffs obtainable using a fully revealing veto incentive compatible mechanism. The intermediate shaded area is the set of payoffs that can additional be obtained using an arbitrary veto incentive compatible mechanism. The darkest area shows the set of payoffs that can additionally be obtained using an interim mechanism.
Citations
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Adverse selection with heterogeneously informed agents
TL;DR: In this paper, a model of over-the-counter markets is proposed, where some asset buyers are informed in that they can identify high quality assets, and heterogeneous sellers with private information choose what type of buyers they want to trade with.
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Research on High-Frequency Information-Transmission Method of Smart Grid Based on CNN-LSTM Model
TL;DR: A research method of high-frequency information transmission in smart grids based on the CNN-LSTM model is proposed, which effectively combines the superiority of the CNN algorithm for high- frequencies information feature extraction and the learning ability of the LSTM algorithm for global features of high -frequency information.
References
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Adverse Selection and Liquidity Distortion in Decentralized Markets
TL;DR: In this paper, the competitive equilibrium outcome in decentralized asset markets when both search friction and adverse selection play roles was studied and it was shown that adverse selection leads to the downward distortion of equilibrium market liquidity.
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Trading dynamics with adverse selection and search: Market freeze, intervention and recovery
Jonathan Chiu,Thorsten V. Koeppl +1 more
TL;DR: In this article, the authors study trading dynamics in an asset market where the quality of assets is private information and finding a counterparty takes time, and the optimal policy is centred around an announcement effect where trading starts already before the intervention.
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Markets with Multidimensional Private Information
Robert Shimer,Veronica Guerrieri +1 more
TL;DR: In this paper, the authors explore price formation in environments with multidimensional private information and find a simple condition under which a continuum of such equilibria exist, in which case there is also an equilibrium with no trade.
Journal ArticleDOI
The role of commitment in bilateral trade
TL;DR: In this paper, the authors characterize the set of equilibrium payoffs in bargaining with interdependent values when the informed party makes all offers, as discounting vanishes, and derive an upper bound, using mechanism design with limited commitment.
Posted Content
Eliciting traders' knowledge in "frictionless" asset market
TL;DR: In this paper, a patient trader should be able to make his trading partners compete to reveal whatever information is relevant to their transactions with him, and this possibility is examined in the context of a model resembling that of Gale (1986).
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