Journal of Finance Vol. 48 No. 4 1993
Brokerage Commission Schedules.
Abstract
It is generally optimal for risk-sharing reasons to base a charge for information on the signal realization. When this is not possible, a charge based on the amount of trading, a brokerage commission, may be a good alternative. The optimal brokerage commission schedule is derived for a risk-neutral information seller faced with risk-averse purchasers who may differ in their risk aversion. Revenues from the brokerage commission are compared with those from a fixed charge for information and the optimal mutual fund management fee.
- Volume
- 48
- Issue
- 4
- Pages
- 1379-1402
- Sources
- bibtex:phds-export.bib