We show that a common (identical across investors) irrationality in information processing can be enough to create …), make investment horizon age-independent, and keep all information complete. The common irrationality in our model takes the … form of a somewhat non-Bayesian information processing. The resulting trade between such essentially identical individuals …

Default and Precision of Information. … fundamentals as well as information are considered as the driving force for the behavior of speculators and investors. The first … default probabilities to infer the weighing of information by investors. Contents • The Dynamics of Currency Crises • The …