Research on Asset Chain Pricing under Asymmetric Information


Authors

  • To Minh Huong Thuy Loi University, Hanoi, Vietnam
DOI: https://doi.org/10.57110/vnujeb.v3i4.169

Abstract

This paper investigates the asset pricing problem in the context of asymmetric information, focusing on the asset chain, and derives an expression for equilibrium asset prices. The findings of this study contribute to our understanding of how information asymmetry affects asset prices and can be used to inform investment decisions in markets with asymmetric information. Future research could explore the implications of these results for other types of assets or for different market conditions. Moreover, policymakers and regulators could also use these findings to design better disclosure requirements and improve market transparency, which could ultimately benefit investors and promote market efficiency. It is essential to continue investigating the impact of information asymmetry on asset prices to develop a more comprehensive understanding of financial markets. Using this equilibrium price expression, the author demonstrates that asset chain-based pricing can help mitigate the volatility of the equilibrium price. This finding could have significant implications for investors and policymakers seeking to stabilize asset prices in volatile markets. Further research could also investigate the practical applications of this pricing model in real-world investment scenarios. The study sheds light on the role of asymmetric information in asset pricing and highlights the potential benefits of asset chain-based pricing.

References

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Published

25-08-2023

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How to Cite

Huong, T. M. (2023). Research on Asset Chain Pricing under Asymmetric Information. VNU University of Economics and Business, 3(4), 24. https://doi.org/10.57110/vnujeb.v3i4.169

Issue

Vol. 3 No. 4

Section

Original Articles

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Copyright (c) 2023 To Minh Huong

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

by VNU Journal of Economics and Business