This paper studies how the arrival of more precise information affects welfare in an economy with incomplete and differential information. We consider a single period, pure exchange economy with aggregate uncertainty in which agents show different attitudes towards risk: wealthy individuals are...

We study how heterogeneous beliefs affect returns and examine whether heterogeneous beliefs are a priced factor in traditional asset pricing models. To accomplish this task, we suggest new empirical measures based on the disagreement among analysts about expected (short-term and long-term)...