Ardalan, Kavous; Hebner, Kevin - In: Journal of Economics and Finance 22 (1998) 1, pp. 87-99
This paper examines the role of the no-arbitrage condition in financial markets with heterogeneous expectations. We consider a single-period, state-contingent claims model, withM risky securities andS states. There exist two types of heterogeneously informed investors, where the information...