We study financial markets in which both rational and overconfident agents coexist and make endogenous information …. Intuitively, as overconfidence goes up, so does price infornativeness, which makes rational agents cut their information …

' private information or beliefs. This result suggests that existence problems of standard sequential equilibrium models …

, and expected welfare) when regulators can induce improved information provision in one of two ways. Regulations can be … designed that either provide investors with more accurate information by improving the quality of prior information, or that …, improving the quality of the public signal can be interpreted as a way of providing information about the anticipations and …

private agents - who have different information sets about the future sequence of short-term interest rates.We analyse …