Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/72260 
Year of Publication: 
2004
Series/Report no.: 
Reihe Ökonomie / Economics Series No. 148
Publisher: 
Institute for Advanced Studies (IHS), Vienna
Abstract: 
We show that a rational expectations equilibrium need not be incentive compatible, need not be implementable as a perfect Bayesian equilibrium and may not be fully Pareto optimal, unless the utility functions are state independent. A comparison of rational expectations equilibria with core concepts is also provided.
Subjects: 
differential information economy
rational expectations equilibrium
coalitional Bayesian incentive compatibility
implementation
game trees
private core
weak fine core
interim weak fine core
JEL: 
C71
C72
D5
D82
Document Type: 
Working Paper

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