An asymmetric information model of a finite horizon "nth order" rational asset price bubble is presented, where (all agents know that)-super-n the asset is worthless. Also, the model has only two agents, so the first order version of the bubble is simpler than other first order bubbles in the...

This paper presents simple new multisignal generalizations of the two classic methods used to justify the first-order approach to moral hazard principal-agent problems, and compares these two approaches with each other. The paper first discusses limitations of previous generalizations. Then a...