The Importance of Information Problem in Financial Markets

DEMİRCİ, Nedret and SANCAK, Ercan (2010) The Importance of Information Problem in Financial Markets. In: 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo.

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Abstract

Information can be considered just as an economic good, because it has a price in the market like every economic product and to produce and disperse it is costly. Also it allows individuals to make choices that yield higher expected payoffs or expected utility than they would obtain from choices made in the absence of information. Information has some other special characteristics than other economic values. It is easy to create but hard to trust. It is easy to spread but hard to control. It influences many decisions. These special characteristics (as compared with other types of goods) complicate many standard economic theories and make sense on the financial markets. The goal of this paper is to emphasize on what information means generally in economics and especially in financial markets and to evaluate the economic problems in a detailed manner when ―imperfect information‖ is available in the financial markets.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: financial markets, asymmetric information, adverse selection, moral hazard, credit rationing.
Subjects: H Social Sciences > HB Economic Theory
Depositing User: Mr. Ibrahim Kinal
Date Deposited: 01 Feb 2012 15:03
Last Modified: 25 Feb 2012 18:02
URI: http://eprints.ibu.edu.ba/id/eprint/198

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