2026年7月22日(水) に産研講演会「Mandatory vs voluntary disclosure in the dynamic market for lemons.」が開催されます。

Our model of repeated trade has applications to financial markets, particularly over-the-counter markets. Various OTC markets have been subject to increased post-trade transparency regulations in recent years, including a number of debt securities markets through TRACE, the European bond market through MiFID II, and the municipal bond market through MSRB Rule G-14. The empirical literature examining the impacts of these regulations has been mixed, with studies generally documenting both positive and negative effects of increased transparency depending on factors such as liquidity or yield of the asset. Our setting sheds light on possible improvements to transparency regulations, where permitting voluntary disclosure of past trade for certain asset types can improve trade frequency and welfare. In particular, when interpreting parameters of our model in the context of the OTC bond market, our results imply that voluntary disclosure can be advantageous relative to mandatory disclosure when adverse selection frictions are not too severe for high- and low-inventory cost bonds.