Branger, Nicole; Schlag, Christian; Wu, Lue - Universität <Münster, Westfalen> / Lehrstuhl für … - 2007
In this paper we study the equilibrium in a heterogeneous economy with twogroups of investors. Over-confident experts incorrectly assume that their signalfor the drift of the dividend process is correlated with the true drift, butinterpret the signal otherwise perfectly. Rational laymen avoid...