", on the future prices. At a sequential equilibrium, all agents expect the "true" price as a possible outcome, and elect … markets at equilibrium, or preclude any perfect price foresight. The second paper shows that correct anticipations need always …

sequential equilibrium, all agents expect the "true" price as a possible outcome, and elect optimal strategies, which clear on … equilibrium with perfect price foresight. We display on an example a continuum of sequential equilibria, varying with agents …' anticipations. We show, when anticipations are private or prone to change, that "correct" price forecasts need always embed a set of …

; this is in common with economies with default, incomplete contracts or price rigidities. Competitive equilibria exist and …