Coury, Tarek; Sciubba, Emanuela - Birkbeck, Department of Economics, Mathematics & Statistics - 2006
In complete markets economies (Sandroni [15]), or in economies with Pareto optimal outcomes (Blume and Easley [9]), the market selection hypothesis holds, as long as traders have identical discount factors. Traders who survive must have beliefs that merge with the truth. We show that in...