This study proposes a tractable imperfectly competitive economy where traders are socially connected with each other via an information network. We investigate the impact of information linkages on market equilibrium outcomes. In the linear-quadratic-normal framework, we establish the existence...

We consider a large rational expectations economy built on Han and Yang (2013) where traders can share information with each other via an information network and investigate the impact of network connectedness on market equilibrium outcomes. We find that in the equilibrium with endogenous...

In the study of rational expectations equilibria, negative exponential and linear utility with a quadratic holding cost are two most commonly used classes of utility functions. Under the classical normality assumption, we show the functional equivalence in the cases of both exogenous and...