An illustration inspired by a figure in Bebczuk, Ricardo N. (2003). Asymmetric Information in Financial Markets: Introduction and Applications. Cambridge University Press.

Edit and compile if you like:
% Author: Rasmus Pank Roulund% Inspired by figure in:% Bebczuk, Ricardo N. (2003). Asymmetric Information in Financial% Markets: Introduction and Applications. Cambridge University Press.\documentclass{minimal}\usepackage{tikz}\usetikzlibrary{arrows,calc}\tikzset{%Define standard arrow tip>=stealth',%Define style for different line styleshelp lines/.style={dashed, thick},axis/.style={<->},important line/.style={thick},connection/.style={thick, dotted},}\newcommand\A{\ensuremath{\mathcal{A}}}\newcommand\B{\ensuremath{\mathcal{B}}}\begin{document}\begin{tikzpicture}[scale=1.2]%Draw axis\coordinate (y) at (0,5);\coordinate (x) at (5,0);\draw[axis] (y) -- (0,0) -- (x);%Important coordinates. These are used in both figures and can be%moved to a seperate settings files%% These coordinates deside where boxes start on the y axis\coordinate (alphaas) at ($0.8*(y)$);\coordinate (alphabs) at ($0.533*(y)$);%% These coordinates deside where boxes end on the x axis\coordinate (cfas) at ($.6*(x)$);\coordinate (cfbs) at ($.9*(x)$);%These sets the interest rate lines\coordinate (rl) at ($(cfas)-.2*(x)$);\coordinate (rla) at ($(rl)-.1*(x)$);\coordinate (rlb) at ($(rl)+.1*(x)$);%%%%%%%%%%%%%%%%%%%%%%%We makes some boxes and connect some coordinates
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