In this paper we provide a characterization of the welfare properties of rational expectations equilibria of economies in which, prior to trading, agents have some information over the realization of uncertainty. We study a model with asymmetrically informed agents, treating symmetric...

In this paper we provide a characterization of the welfare properties of rational expectations equilibria of economies in which, prior to trading, agents have some information over the realization of uncertainity. We study a model with asymmetrically informed agents, treating symmetric...

We study the value of public information in competitive economies with incomplete asset markets. We show that generically the welfare effect of a change in the information available prior to trading can be in any direction: there exist changes in information that make all agents better off, and...