SFB 303 Discussion Paper No. A - 271

Author: Berk, Jonathan
Title: The Timing of Information in a General Equilibrium Framework
Abstract: This paper addresses the question of how an endogenously determined information flow effects the model of dynamically complete markets. We find that the model is not robust to the latitude agents have in deciding when information is revealed. We also show that on the announcement of a change in the information flow, in anything but a complete market, prices will adjust to reflect the announcement. Finally, we give an example of a fully rational model in which prices fully reveal all information, and in equilibrium, an agent pays a strictly positive amount for new information.
Creation-Date: January 1990
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