Glycopantis, Dionysius Muir, Allan Yannelis, Nicholas C.
Year of Publication:
Reihe Ökonomie / Economics Series, Institut für Höhere Studien (IHS) 148
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.
differential information economy rational expectations equilibrium coalitional Bayesian incentive compatibility implementation game trees private core weak fine core interim weak fine core