Glycopantis, Dionysius; Muir, Allan; Yannelis, Nicholas - In: Economic Theory 26 (2005) 4, pp. 765-791
We point out several conceptual difficulties of the rational expectations equilibrium concept. In particular we show that such an equilibrium need not be incentive compatible and need not be implementable as a perfect Bayesian equilibrium . A comparison of rational expectations equilibria with...