Adverse Selection and Security Design
研究一个掌握私有信息的企业家如何设计最优证券，发现她不会发行让自己有信息优势的资产，因为理性外部投资者会引发逆向选择，阻止她利用内幕地位获利。
This paper studies the problem of optimal security design by a privately informed entrepreneur. In the context of a simple parametric model, it is shown that the entrepreneur does not find it profitable to float an asset that affords her an informational advantage. The reason is that, with rational, uninformed outside investors, the entrepreneur faces adverse selection in the security market, which prevents her from exploiting her position as an insider. This is true whether or not she has market power in trading the asset.