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Hayek, Hicks, Radner, and four equilibrium concepts : intertemporal, sequential, temporary, and rational-expectations

Glasner, David - In: Studies in the history of monetary theory : …, (pp. 457-488). 2021

Hayek was among the first to realize that, in intertemporal equilibrium, all agents must have correct expectations of future prices. Before comparing four categories of intertemporal equilibrium - (1) Perfect-foresight equilibrium, (2) Radner’s sequential equilibrium with incomplete markets,...

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