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Capital Asset Pricing in a General Equilibrium Framework

Journal of Financial and Quantitative Analysis 1978 13(4), 613
Paul H. Cootner, David H. Pyle, Capital Asset Pricing in a General Equilibrium Framework, The Journal of Financial and Quantitative Analysis, Vol. 13, No. 4, Proceedings of Thirteenth Annual Conference of the Western Finance Association, June 20-26, 1978 (Nov., 1978), pp. 613-624

INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATION

Journal of Finance 1977 32(2), 371-387 open access
NUMEROUS MARKETS ARE characterized by informational differences between buyers and sellers. In financial markets, informational asymmetries are particularly pronounced. Borrowers typically know their collateral, industriousness, and moral rectitude better than do lenders; entrepreneurs possess "inside" information about their own projects for which they seek financing.