TY - JOUR
T1 - Endogenous differential information
AU - Cea-Echenique, Sebastián
AU - Hervés-Beloso, Carlos
AU - Torres-Martínez, Juan Pablo
N1 - Funding Information:
We would like to thank Jean-Marc Bonnisseau, Bernard Cornet, and Jo?o Correia-da-Silva for helpful discussions. We specially thank the detailed comments and suggestions of an anonymous referee. S. Cea-Echenique acknowledges financial support from Conicyt and University of Chile; C.?Herv?s-Beloso acknowledges financial support from Research Grants ECO2012-38860-C02-02 (Ministerio de Economia y Competitividad) and RGEA (Xunta de Galicia and FEDER); J.?P.?Torres-Mart?nez acknowledges financial support from Conicyt through Fondecyt Projects 1120294 and 1150207.
Publisher Copyright:
© 2015, Springer-Verlag Berlin Heidelberg.
PY - 2017/1/1
Y1 - 2017/1/1
N2 - We include endogenous differential information in a model with sequential trade and incomplete financial participation. Agents update information through market signals given by commodity prices and asset deliveries. Information acts over admissible strategies and consumption tastes, allowing discontinuities in preferences and choice sets. Therefore, equilibrium may cease to exist. However, internalizing the compatibility between information and consumption through preferences, and without requiring either financial survival assumptions or fully revealing prices, equilibrium existence can be ensured.
AB - We include endogenous differential information in a model with sequential trade and incomplete financial participation. Agents update information through market signals given by commodity prices and asset deliveries. Information acts over admissible strategies and consumption tastes, allowing discontinuities in preferences and choice sets. Therefore, equilibrium may cease to exist. However, internalizing the compatibility between information and consumption through preferences, and without requiring either financial survival assumptions or fully revealing prices, equilibrium existence can be ensured.
KW - Endogenous differential information
KW - Incomplete markets
KW - Rational expectations equilibrium
KW - Restricted participation
UR - http://www.scopus.com/inward/record.url?scp=84944627608&partnerID=8YFLogxK
U2 - 10.1007/s00199-015-0924-5
DO - 10.1007/s00199-015-0924-5
M3 - Article
AN - SCOPUS:84944627608
SN - 0938-2259
VL - 63
SP - 51
EP - 72
JO - Economic Theory
JF - Economic Theory
IS - 1
ER -