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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