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Asymmetric information and financial markets

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  • Estrada, Fernando

Abstract

This paper aims to explore the relevance of the Asymmetric Information and the Theory of Argumentation TA in the complex area of financial crises. Specifically, we investigated the scope of the phenomenon of persuasion in advertising. It examines advertisements in publications notable economic movement in Colombia. The financial communication is important to distinguish how to run the models of behavior based on beliefs of agents. Consequently, investors' beliefs can also change systematically with changes in market prices

Suggested Citation

  • Estrada, Fernando, 2012. "Asymmetric information and financial markets," MPRA Paper 39025, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39025
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    File URL: https://mpra.ub.uni-muenchen.de/39025/1/MPRA_paper_39025.pdf
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    References listed on IDEAS

    as
    1. Fernando Estrada Gallego, 2008. "Hebert A. Simon y la economía organizacional," Revista Sociedad y Economía, Universidad del Valle, CIDSE, July.
    2. Chevalier, Judith & Ellison, Glenn, 1997. "Risk Taking by Mutual Funds as a Response to Incentives," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1167-1200, December.
    3. repec:bla:jfinan:v:53:y:1998:i:5:p:1589-1622 is not listed on IDEAS
    4. De Long, J Bradford, et al, 1990. "Positive Feedback Investment Strategies and Destabilizing Rational Speculation," Journal of Finance, American Finance Association, vol. 45(2), pages 379-395, June.
    5. Fernando Estrada Gallego, 2005. "Dialéctica en la argumentación económica," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 7(12), pages 113-135, January-J.
    6. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    7. Prem C. Jain & Joanna Shuang Wu, 2000. "Truth in Mutual Fund Advertising: Evidence on Future Performance and Fund Flows," Journal of Finance, American Finance Association, vol. 55(2), pages 937-958, April.
    8. Edward L. Glaeser, 2005. "The Political Economy of Hatred," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(1), pages 45-86.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Estrada, Fernando, 2014. "Rescue costs and financial risk," MPRA Paper 59066, University Library of Munich, Germany.
    2. Estrada, Fernando, 2014. "Rescate y costos del riesgo financiero [Rescue costs and financial risk]," MPRA Paper 58848, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial crises; Financial markets; economy; theory argumentation; information; advertising;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • G01 - Financial Economics - - General - - - Financial Crises

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