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Article
Collateralized assets and asymmetric information
Journal of Mathematical Economics (2008)
  • Myrian Petrassi, Central Bank of Brazil
  • Juan Pablo Torres-Martínez, University of Chile
Abstract
Introducing assets backed by physical collateral, we extend the [Cornet, B., De Boisdeffre, L., 2002. Arbitrage and price revelation with asymmetric information and incomplete markets. Journal of Mathematical Economics 38, 393-490.] model of asymmetric information to allow for default. We show that, independently of the financial-informational structure, equilibrium exists.
Keywords
  • Collateralized assets,
  • asymmetric information
Disciplines
Publication Date
2008
Citation Information
Petrassi, M. and J. P. Torres-Martínez (2008), "Collateralized assets and asymmetric information," Journal of Mathematical Economics, volume 44, pages 530-534.