Asymmetric information means arbitrage opportunities. It is understandable that those informed ones would not leak the information because of synchronization risks. Without paying for the premium of the information, I could see the reason why most of the informed one would feel reluctant to spread the information. The market maker, who in this case is the website editors, is the most strength-less market-maker ever, since they don't have any information about the market. So, it is basically even not a market, which means informed traders can't benefit efficiently with other traders, since the market is not functional and the information doesn't feed back to the informed traders. In this case, the informed has a tendency to spread fake information since the marginal cost of the fake information is surprisingly low and the opportunity cost is trivial. That's why I was trying to build up a QQ social network where personal information, to some extent, is shared thus the information could be traded with potential benefits. -- by 会员 reaver2001 (2012/4/20 13:55:47)
You are right. I am so lucky to get inside information this year. |