Asymmetric Information in Bilateral Trade and in Markets: An Inversion Result

2011 ◽  
Author(s):  
Stephan Lauermann
Keyword(s):  
Asymmetric Information ◽  
Bilateral Trade ◽  
Inversion Result

scholarly journals Asymmetric Information and Intermediation Chains

2016 ◽  
Vol 106 (9) ◽  
pp. 2699-2721 ◽  
Author(s):  
Vincent Glode ◽  
Christian Opp
Keyword(s):  
Asymmetric Information ◽  
Market Power ◽  
Bilateral Trade ◽  
Trade Volume ◽  
Classic Problem ◽  
Information Set ◽  
Decentralized Markets ◽  
Parsimonious Model ◽  
Model Features ◽  
Shed Light

We propose a parsimonious model of bilateral trade under asymmetric information to shed light on the prevalence of intermediation chains that stand between buyers and sellers in many decentralized markets. Our model features a classic problem in economics where an agent uses his market power to inefficiently screen a privately informed counterparty. Paradoxically, involving moderately informed intermediaries also endowed with market power can improve trade efficiency. Long intermediation chains in which each trader's information set is similar to those of his direct counterparties limit traders' incentives to post prices that reduce trade volume and jeopardize gains to trade. (JEL D42, D82, D85, L12, L14)

AGENCY PROBLEM DALAM PENERAPAN PEMBIAYAAN AKAD MUDHARABAH PADA PERBANKAN SYARIAH

ALQALAM ◽  
2016 ◽  
Vol 33 (1) ◽  
pp. 46
Author(s):  
Aswadi Lubis
Keyword(s):  
High Risk ◽  
Asymmetric Information ◽  
Human Resources ◽  
Moral Hazard ◽  
Adverse Selection ◽  
Agency Problem ◽  
Agency Problems ◽  
Islamic Banking ◽  
The Public

The purpose of writing this article is to describe the agency problems that arise in the application of the financing with mudharabah on Islamic banking. In this article the author describes the use of the theory of financing, asymetri information, agency problems inside of financing. The conclusion of this article is that the financing is asymmetric information problems will arise, both adverse selection and moral hazard. The high risk of prospective managers (mudharib) for their moral hazard and lack of readiness of human resources in Islamic banking is among the factors that make the composition of the distribution of funds to the public more in the form of financing. The limitations that can be done to optimize this financing is among other things; owners of capital supervision (monitoring) and the customers themselves place restrictions on its actions (bonding).

DEVELOPMENT TRENDS AND PROSPECTS OF ECONOMIC AND TRADE COOPERATION BETWEEN CHINA AND UKRAINE

2018 ◽  
Vol 2018 (6) ◽  
pp. 3-12
Author(s):  
Zhang DONGYANG ◽  
Keyword(s):  
Free Trade ◽  
Bilateral Trade ◽  
The United States ◽  
Economic Cooperation ◽  
Free Trade Zone ◽  
Asia Pacific ◽  
Economic Downturn ◽  
The European Union ◽  
Association Agreement ◽  
The Eu

The status and prospects of development of trade and economic relations between Ukraine and China are considered. It is proved that bilateral cooperation in the trade and economic sphere has made significant progress. In 2012–2017, China was the second largest trading partner of Ukraine after Russia. However, the problem of imbalance in imports and exports between Ukraine and China has not yet been resolved. In addition, the scale and number of projects in which Ukraine attracts Chinese investment is much less than investments from European countries and the United States. It is justified that trade and economic cooperation between Ukraine and China is at a new historical stage. On the one hand, Ukraine signed the Association Agreement with the European Union, and on January 1, 2016, the rules of the free trade zone between Ukraine and the EU entered into force. This helps to accelerate the integration of Ukrainian economy into European one. On the other hand, the global economic downturn requires the introduction of innovations in the model of cooperation. The Chinese initiative “One belt is one way” is one of the variants of the innovation model of cooperation. Its significance is to unite the Asia-Pacific region with the EU in order to join the Eurasian Economic Union, create a new space and opportunities for development and achieve prosperity with the Eurasian countries. All this forms unprecedented opportunities for development of bilateral economic and trade relations. It seems that to fully open the potential of Ukrainian economy and expand bilateral trade and economic cooperation, it is necessary to take into account such proposals as the establishment of the Sino-Ukrainian industrial park, the promotion of cooperation in the field of electronic commerce, the formation of the Sino-Ukrainian free trade zone and enhanced interaction within multilateral mechanisms (for example, the Shanghai Cooperation Organization and the interaction of China and the countries of Central and Eastern Europe in the 16 + 1 format).

The development of trade relations between the Republic of Cyprus and the Soviet Union (1960-1963)

2020 ◽  
Vol 2020 (10-3) ◽  
pp. 258-263
Author(s):  
Argyrios Tasoulas
Keyword(s):  
Soviet Union ◽  
Bilateral Trade ◽  
Historical Analysis ◽  
Berlin Wall ◽  
International Crises ◽  
Trade Relations ◽  
The Soviet Union ◽  
The Russian Federation ◽  
The Republic ◽  
Republic Of Cyprus

This article studies the development of Soviet-Cypriot trade relations in 1960-63, based on research at the Archives of Foreign Policy of the Russian Federation (AVP RF). Concurrently, a historical analysis follows the events after the creation of the new Cypriot state and the two major Cold War crises (the building of the Berlin wall and the Cuban missile crisis). The efforts made by both governments to develop bilateral trade, the aftermath of the two major international crises and the results of the two governments’ policies have been identified and analyzed.

AN ANALYSIS OF THE EU’S INVESTMENT POLICY AFTER CETA: EFFECTS ON THE BULGARIAN ECONOMY

2020 ◽  
Author(s):  
Nikolay Marin ◽  
◽  
Mariya Paskaleva ◽  
Keyword(s):  
Bilateral Trade ◽  
Positive Impact ◽  
Value Added ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Investment Policy ◽  
National Parliaments ◽  
Total Employment ◽  
Investment Protection ◽  
New Generation

In this paper we analyze the changes of the EU’s investment policy provoked by the mixed trade agreements. The EU’s investment policy has turned towards attaining bilateral trade agreements. One of these “new-generation” agreements is the Comprehensive Economic and Trade Agreement (CETA). It is in a process of being ratified by the national parliaments of the EU members. This study is focused on the general characteristics of CETA and the eventual problems posed by its regulatory and wide-ranging nature. We prove that the significance of this agreement pertains not only to the economic influence, that it will have on the European and Canadian economies, but CETA is also the first trade agreement to have been negotiated with a focus on investment protection and a change in the EU’s investment policy. The current study reveals the influence arising from the conclusion of CETA on the Bulgarian economy with an emphasis on electronic industry, machinery industry and manufacturing. We estimate both – the direct and indirect effects on Bulgaria’s exports, imports, value added and employment. In order to estimate the influence, we apply the multi-regional input-output model. It is proved that CETA will have a low but positive impact on the Bulgarian economy. After constructing different scenarios of development, we prove that the influence of CETA on the Bulgarian economy will amount to 0.010% GDP. The average total employment will be increased by more than 172 jobs in Bulgaria, which in turn, relative to the labor market, represents less than 0.01% of the total employment.

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