Advanced Search
MyIDEAS: Login

Do Prices Transmit Rationally Expected Information?

Contents:

Author Info

  • Gabriel Desgranges

    (University of Cergy-Pontoise and University of Saint-Etienne,)

  • Pierre-Yves Geoffard

    (DELTA (PARIS-Jourdan) and University of Lausanne,)

  • Roger Guesnerie

    (DELTA (PARIS-Jordan),)

Abstract

A simple model with asymmetric information, in which inventory holders or traders submit demand curves to an auctioneer, has a unique partially revealing equilibrium. We wonder whether the agents can plausibly coordinate on this equilibrium through "eductive" reasoning relying on common knowledge. The analysis stresses the role of two effects, sensitivity and amplification, whose product should be small enough. The property is obtained whenever the equilibrium excess demand is steep enough, i.e., when the search for information does not distort demand too much. Neither the influence of the number of informed agents nor that of noise trading are monotonic. Real-time learning has strikingly different features. (JEL: D82, D84) Copyright (c) 2003 The European Economic Association.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1542-4774/issues
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 1 (2003)
Issue (Month): 1 (03)
Pages: 124-153

as in new window
Handle: RePEc:tpr:jeurec:v:1:y:2003:i:1:p:124-153

Contact details of provider:
Web page: http://www.mitpressjournals.org/jeea

Order Information:
Web: http://www.mitpressjournals.org/jeea

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Roger Guesnerie, 2005. "Strategic substitutabilities versus strategic complementarities: Towards a general theory of expectational coordination?," Working Papers halshs-00590856, HAL.
  2. Gabriel Desgranges & Maik Heinemann, 2004. "Strongly rational expectations equilibria with endogenous acquisition of information," Computing in Economics and Finance 2004 35, Society for Computational Economics.
  3. Gabrielle Demange, 2009. "Information revelation in a security market: The impact of uncertain participation," Working Papers halshs-00575046, HAL.
  4. Roger Guesnerie, 2008. "Macroeconomic and monetary policies from the "eductive" viewpoint," PSE Working Papers halshs-00586749, HAL.
  5. Gabriel DESGRANGES and Stéphane GAUTHIER, 2008. "Stabilizing through Poor Information," THEMA Working Papers 2008-32, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  6. Roger Guesnerie, 2008. "Macroeconomic and monetary policies from the "eductive" viewpoint," Working Papers halshs-00586749, HAL.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:tpr:jeurec:v:1:y:2003:i:1:p:124-153. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.