Welcome to our series on economic theories that are changing the way we think. Today, Richard Holden explains how asymmetric information – when one party to a transaction knows more about the ...

Our results for low-risk firms are consistent with the predictions of both theoretical models, but our findings for high-risk firms conflict with the predictions of Diamond's model and with much of ...

In modern economies, which are characterised by complexity and continuous change, information plays a vital role in resource allocation and price developments. Analysts and professionals base their ...

We study financial matching in credit markets when entrepreneurs have private information about their success potential. Entrepreneurs can search for financing for either a "risky" or a "safe" ...

COMPUTING PROBLEMS OF ASYMMETRIC INFORMATION USING LINEAR PROGRAMMING This project aims at popularizing the usage of numerical methods, and in particular, linear programming techniques, for solving ...

Such markets are said to be characterized by asymmetric information, and this year's winners of the Nobel Prize in Economics are credited with laying the foundation for a general theory of how ...

Real-World Implications Nowhere are these economic risks more evident than in DeFi lending markets, representing more than $18 billion of the industry.