Abstract
Informational aspect of financial equilibrium has received much attention in the past three decades. In particular, two main frameworks have become canonical models in information asymmetries of financial market: (i) Grossman and Stiglitz model, (ii) Kyle model. Although these two different streams of models are widely used in many financial applications, the comparison between these two classes of models has not yet been fully attempted. In this review paper, I explain a unifying framework which incorporates both types of models, and compare the equilibrium properties of these two types of models.
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