Seminar series
Date
Tue, 03 Jun 2014
Time
12:30 -
13:30
Location
Oxford-Man Institute
Speaker
Rohit Rahi
Organisation
LSE
We consider the market for a risky asset for which agents have interdependent private valuations. We study competitive rational expectations equilibria under the standard CARA-normal assumptions. Equilibrium is partially revealing even though there are no noise traders. Complementarities in information acquisition arise naturally in this setting. We characterize stable equilibria with endogenous information acquisition. Our framework encompasses the classical REE models in the CARA-normal tradition.