This paper studies a game of strategic experimentation in which the players learn from the experiments of others as well as their own. <br> We first establish the efficient benchmark where the players co-ordinate in order to maximise joint expected payoffs, and then show that, because of...

We develop a multi-period model of strategic trading in an asset market where traders are uncertain about market liquidity. In our model, informed traders strategically trade against competitive market makers to exploit their short-lived private information. Unlike market makers, informed...

Building on a stochastic life-cycle model with credit constraints and heterogeneous agents and dwellings, this paper clarifies the contribution of income fluctuations to housing price volatility. First, housing prices are shown to depend on the current income of young households. <br> Empirical...