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Can I read Information Acquisition in a Noisy Rational Expectations Economy on EtoBox?
Information Acquisition in a Noisy Rational Expectations Economy by Robert E. Verrecchia is a Economics, Econometrics and Finance article available to read on EtoBox.
What is Information Acquisition in a Noisy Rational Expectations Economy about?
## INFORMATION ACQUISITION IN A NOISY RATIONAL EXPECTATIONS ECONOMY' BY ROBERT E. VERRECCHIA We present a model of information acquisition in a competitive market in which traders can learn both from costly (and diverse) private enquiry and price, which costlessly (but partially) reveals the total amount of information known to all traders. Our major purpose is to show that an equilibrium exists in such a market: that is, there exists a rational expectations competitive equilibrium in which the amount of costly diverse information each trader acquires is endogenously determined. From this result we investigate the change in the informativeness of price relative to changes in the level of noise, the cost of acquiring information, and the distribution of traders' risk preferences.
Who reads Information Acquisition in a Noisy Rational Expectations Economy?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Robert E. Verrecchia
- Publisher
- JSTOR
- Published
- 1982
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)