On uniqueness of equilibrium in the Kyle Model

Year:

2014

Autor(s):

Andrew Mc Lennan; P. K. Monteiro; Rabee Tourky

Serie number: 761

URI: http://hdl.handle.net/10438/13028

Abstract:

A longstanding unresolved question is whether the one-period Kyle Model of an informed trader and a noisily informed market maker has an equilibrium that is different from the closed-form solution derived by Kyle (1985). This note advances what is known about this open problem.