This paper analyzes conditions for existence of a strongly rational expectations equilibrium (SREE) in models with private information, where the amount of private information is endogenously determined. It is shown that the conditions for existence of a SREE known from models with exogenously...

This paper analyzes conditions for existence of a strongly rational expectations equilibrium (SREE) in models with private information, where the amount of private information is endogenously determined. It is shown that the conditions for existence of a SREE known from models with exogenously...

We de fine a continuous index of strategic stability, p􀀀stability, which requires equilibrium to be the unique outcome compatible with common knowledge of rationality and common knowledge of p􀀀beliefs (beliefs that put probability at least p on the equilibrium pro le). We show that every...