Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions
We consider a two-period model in which a continuum of agents trade in a context of costly information acquisition and systematic heterogeneous expectations biases. Because of systematic biases agents are supposed not to learn from others' decisions. In a previous work under somehow strong tech...
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2014/268427 |
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| _version_ | 1849404996766924800 |
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| author | Agnès Bialecki Eléonore Haguet Gabriel Turinici |
| author_facet | Agnès Bialecki Eléonore Haguet Gabriel Turinici |
| author_sort | Agnès Bialecki |
| collection | DOAJ |
| description | We consider a two-period model in which a continuum of agents trade in a context of costly information acquisition and systematic heterogeneous expectations biases. Because of systematic biases agents are supposed not to learn from others' decisions. In a previous work under somehow strong technical assumptions a market equilibrium was proved to exist and the supply and demand functions were proved to be strictly monotonic with respect to the price. Here we extend these results under very weak technical assumptions. We also prove that the equilibrium price maximizes the trading volume and further additional properties (such as the antimonotonicity of the trading volume with respect to the marginal information price). |
| format | Article |
| id | doaj-art-4940985a5e5a4849999b4874b684c27e |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-4940985a5e5a4849999b4874b684c27e2025-08-20T03:36:48ZengWileyJournal of Applied Mathematics1110-757X1687-00422014-01-01201410.1155/2014/268427268427Existence of an Equilibrium for Lower Semicontinuous Information Acquisition FunctionsAgnès Bialecki0Eléonore Haguet1Gabriel Turinici2ENS de Lyon, 15 Parvis René Descartes, BP 7000, 69342 Lyon Cedex 07, FranceENSAE, 3 Avenue Pierre Larousse, 92245 Malakoff Cedex, FranceCEREMADE, Université Paris Dauphine, Place du Marechal de Lattre de Tassigny, 75016 Paris, FranceWe consider a two-period model in which a continuum of agents trade in a context of costly information acquisition and systematic heterogeneous expectations biases. Because of systematic biases agents are supposed not to learn from others' decisions. In a previous work under somehow strong technical assumptions a market equilibrium was proved to exist and the supply and demand functions were proved to be strictly monotonic with respect to the price. Here we extend these results under very weak technical assumptions. We also prove that the equilibrium price maximizes the trading volume and further additional properties (such as the antimonotonicity of the trading volume with respect to the marginal information price).http://dx.doi.org/10.1155/2014/268427 |
| spellingShingle | Agnès Bialecki Eléonore Haguet Gabriel Turinici Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions Journal of Applied Mathematics |
| title | Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions |
| title_full | Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions |
| title_fullStr | Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions |
| title_full_unstemmed | Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions |
| title_short | Existence of an Equilibrium for Lower Semicontinuous Information Acquisition Functions |
| title_sort | existence of an equilibrium for lower semicontinuous information acquisition functions |
| url | http://dx.doi.org/10.1155/2014/268427 |
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