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Trading and Creation of New Information Asymmetries Suppose I am an uninformed trader, and I lift the offer. The bid and offer rise. The market
Trading and Creation of New Information Asymmetries Suppose I am an uninformed trader, and I lift the offer. The bid and offer rise. The market (and market maker if there is one) think, "Maybe he had some positive information." I know that I don't have any information. My knowledge of my own ignorance gives me an advantage over the market. I know (and only I know) that bids and offers are higher than they should be. Can an uninformed trader move the market so as to give the appearance of information
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