Stability under learning of equilibria in financial markets with supply information

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors


In a recent paper Ganguli/Yang (2009) demonstrate, that there can exist multiple equilibria in a financial market model a' la Grossman/Stiglitz (1980) if traders possess private information regarding the supply of the risky asset. The additional equilibria differ in some important respects from the usual equilibrium of the Grossman-Stiglitz type which still exists in this model. This note shows that these additional equilibria are always unstable under eductive learning (cf. Guesnerie (2002)) and adaptive learning via least-squares estimation (cf. Marcet/Sargent (1988) or Evans/Honkapohja (2001)). Regarding the original Grossman-Stiglitz type equilibrium, the stability results are less clear cut, since this equilibrium might be unstable under eductive learning while it is always stable under adaptive learning.
Original languageEnglish
JournalEconomics Bulletin
Volume30
Issue number1
Pages (from-to)383-391
Number of pages9
ISSN1545-2921
Publication statusPublished - 2010

Documents

Links

Recently viewed

Activities

  1. Sinn, Zweck und Grenzen der Datenerhebung an einer Universität (Schloss Herrenhausen)
  2. Soziale Insekten - 2011
  3. ZDM (Fachzeitschrift)
  4. Heinrich-Böll-Stiftung Berlin e.V. (Externe Organisation)
  5. Expertworkshop "Technik und Theorie digitaler Medien" 2014
  6. Antrittsvorlesung, Leuphana University Lüneburg
  7. Bedeutung von Kliniken als Quellen des Eintrags in die Umwelt
  8. Integrales Energiekonzept für eine klimaneutrale Universität: Projekt "klimaneutraler Campus"
  9. Von der interkulturellen Philosophie lernen – Inter- und transdisziplinäre Forschung als Wissenschaft in interkultureller Orientierung
  10. VDG - Verlag und Datenbank für Geisteswissenschaften (Verlag)
  11. Educación para el Desarollo Sostenible– Enfoques Teóricos y Prácticos
  12. Austrian Academy of Sciences (Externe Organisation)
  13. Editorial Board of the "British Journal of Management" (Zeitschrift)
  14. Gesellschaft für Didaktik der Mathematik e.V. (Externe Organisation)
  15. Debating Accounting and Sustainability: Incompatibility and Rapprochement in the Pursuit of Corporate Sustainability
  16. Leuphana Universität Lüneburg (Organisation)
  17. 26th Annual Research Symposium of the Royal Irish Academy's National Committee for Modern Language Studies - 1999
  18. DGfE-Kongress 2008
  19. 40th Annual Meeting of The Society for Social Studies of Science - 4S 2015
  20. City as Space of Possibility – Alternative and Artistic Initiatives Towards Urban Sustainability
  21. International Panel "L’image - document face au numérique: mise en crise ou mise en lumière?" 2012