Endogenous InformationThe role of Sequential Trade and Financial Participation

  1. Sebastián Cea-Echenique
  2. Carlos Hervés-Beloso
  3. Juan Pablo Torres-Martínez
Journal:
Working paper series ( RGEA )

Year of publication: 2012

Issue: 7

Type: Working paper

Abstract

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