27,338 research outputs found

    Liquidity preference and information

    Get PDF
    This paper explores the link between anticipated information and a preference for liquidity in investment choices. Given a subjective ordering of investment portfolios by their liquidity, we identify a sufficient condition under which the prospect of finer resolution of uncertainty creates a preference for more liquid positions. We then show how this condition might arise naturally in some standard classes of sequential decision problems
    • …
    corecore