imperfectly informed traders.

Public signals are well-known to be particularly influential when privately informed agents interact strategically (e.g. Morris and Shin AER 2002). However, that a signal is ``public" in the common knowledge sense is a much stronger assumption than what is implied by the everyday meaning of the...

In models where privately informed agents interact, agents may need to form higher order expectations, i.e. expectations of other agents' expectations. This paper explores dynamic higher order expectations in a setting where it is common knowledge that agents are rational Bayesians. This...

Public signals are well-known to be particularly influential when privately informed agents interact strategically (e.g. Morris and Shin AER 2002). Public signals are by definition common knowledge and that fact makes such signals particularly useful for individual agents who want to predict...