Lipman, Barton L.; Bhattacharyya, Sugato - In: Economic Theory 6 (1995) 3, pp. 469-494
Tirole (1982) is commonly interpreted as proving that bubbles are impossible with finitely many rational traders with common priors. We study a simple variation of his model in which bubbles can occur, even though traders have common priors and common knowledge that the asset has no fundamental...