I'm reading a paper on order anticipation strategy and came across this line in the paper:
We assume that all model parameters, including
∆ := (∆0 , . . . , ∆n ), are known to all strategic traders. Hence all traders anticipate the net orders of all other traders.
I have read similar arguments made in some other papers as well. I wonder if it is fair to make such an assumption. I havent read the entire paper because this line left me puzzled. Can someone please share some insights on this points.
Link to the paper
---EDIT---- In the above comment. n is the number of strategic participants and ∆i is the number of shares that the ith participants want to buy/sell.