complete or incomplete information. ( Complete information means there is no private information.) The corresponding solution … concepts are: Nash equilibrium in static games of complete information; backwards induction (or subgame-perfect Nash … equilibrium) in dynamic games of complete information; Bayesian Nash equilibrium in static games with incomplete information; and …

In recent years there has been a growing interest in macro models with heterogeneity in information and complementarity … there is room for policies that correct the way agents use information in equilibrium, and what are the welfare effects of … the information disseminated by the media or policy makers. We argue that a key to answering all these questions is the …

This paper studies policy in a class of economies in which information about commonly-relevant fundamentals -- such as …, the decentralized use of information can fail to be efficient either because of discrepancies between private and social … second case, inefficiency manifests itself in suboptimal social learning (low quality of information contained in …

complementarity or substitutability, and incomplete information. In equilibrium, complementarity amplifies aggregate volatility by … increasing the sensitivity of actions to public information; substitutability raises cross-sectional dispersion by increasing the … sensitivity to private information. To address whether these effects are undesirable from a welfare perspective, we characterize …

participants play a coordination game with information heterogeneity. We consider defense policies against speculative currency … costly policy action only for moderate fundamentals. Market participants can use this information to coordinate on di … measure only for a small region of moderate fundamentals, and this region shrinks as the information in the market becomes …

, asymmetric information, imperfect competition, funding constraints, and search---and for each imperfection we address the three …

This paper proposes a theory of liquidity dynamics. Illiquidity results from asymmetric information. Observing the … historical track record teaches agents how to interpret public information and helps overcome information asymmetry. There can be … an illiquidity trap: too much asymmetric information leads to the breakdown of trade, which interrupts learning and …