Econometrica Vol. 72 No. 3 2004
Simple Finite Horizon Bubbles Robust to Higher Order Knowledge
Abstract
An asymmetric information model of a finite horizon “nth order” rational asset price bubble is presented, where (all agents know that)n the asset is worthless. Also, the model has only two agents, so the first order version of the bubble is simpler than other first order bubbles in the literature.
- DOI
- 10.1111/j.1468-0262.2004.00516.x
- Volume
- 72
- Issue
- 3
- Pages
- 927-936
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref