Asymmetric information

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


asymmetric-information

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 styles
help 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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Click to download: asymmetric-information.texasymmetric-information.pdf
Open in Overleaf: asymmetric-information.tex