Bannier, Christina E. (contributor); … - 2005
distributed
with mean y and variance 1=a. The distribution of is common knowledge in the
market and may as such be referred to as … taken from N(y;1=a). This distribution is common
knowledge in the market.
† In t = 1, investors observe individual private … public information about .
Note that if the exact value of were common knowledge in the market, multiple
equilibria would …