Correia-da-Silva, Joao; Hervés-Beloso, Carlos - Faculdade de Economia, Universidade do Porto - 2012
We introduce a two-period economy with asymmetric information about the state of nature that occurs in the second period. Each agent is endowed with an information structure that describes her (incomplete) ability to prove whether or not a state has occurred. We show that if the number of states...