FROM RATIONALITY TO BOUNDED RATIONALITY *
We investigate the role of bounded rationality in asset pricing and information efficiency. We show that the market stays between the weak-form efficiency and the semi-strong-form efficiency in a market with a single asymmetric information and without noise supply. We show the existence of an overall equilibrium in which the publicly available information can be priced and is 'almost free', and the majority of the agents choose to stay uninformed. We show the existence of a Nash competitive equilibrium in an information game. Copyright Blackwell Publishing Ltd/University of Adelaide and Flinders University 2005..
Year of publication: |
2005
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Authors: | ZHENG, ZIYU |
Published in: |
Australian Economic Papers. - Wiley Blackwell. - Vol. 44.2005, 4, p. 455-474
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Publisher: |
Wiley Blackwell |
Saved in:
freely available
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