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Endogenous Information: The Role of Sequential Trade and Financial Participation

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  • Sebastián Cea-Echenique
  • Carlos Hervés-Beloso
  • Juan Pablo Torres-Martínez

Abstract

We develop a general equilibrium model with differential information and incomplete financial participation. Agents endogenously update information from commodity prices and financial contracts. Without require financial survival assumptions, we prove equilibrium existence in a model where the heterogeneity of preferences across states of nature may depends on available information.

Suggested Citation

  • Sebastián Cea-Echenique & Carlos Hervés-Beloso & Juan Pablo Torres-Martínez, 2012. "Endogenous Information: The Role of Sequential Trade and Financial Participation," Working Papers wp361, University of Chile, Department of Economics.
    • Handle: RePEc:udc:wpaper:wp361
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    References listed on IDEAS

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