Informed traders

  title={Informed traders},
  author={Dorje C. Brody and Mark H. A. Davis and Robyn L. Friedman and Lane P. Hughston},
  journal={Proceedings of the Royal Society A: Mathematical, Physical and Engineering Sciences},
  pages={1103 - 1122}
An asymmetric information model is introduced for the situation in which there is a small agent who is more susceptible to the flow of information in the market than the general market participant, and who tries to implement strategies based on the additional information. In this model market participants have access to a stream of noisy information concerning the future return of an asset, whereas the informed trader has access to a further information source which is obscured by an additional… 

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