Endogenous InformationThe role of Sequential Trade and Financial Participation
- Sebastián Cea-Echenique
- Carlos Hervés-Beloso
- Juan Pablo Torres-Martínez
Année de publication: 2012
Número: 7
Type: Working Paper
Résumé
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.