In a financial market where agents trade for prices in the short-term and where news can increase the uncertainty of the public belief, there are strategic complementarities in the acquisition of private information and a continuum of equilibrium strategies if the cost of information is...

England financed its war of the Austrian succession (1743-48) mainly by issuing 3% bonds and 4% callable bonds which were indeed redeemed by Pelham in 1749 through an interest reduction. Implicit policy rules and constraints made the 4% bond a derivative asset of a 3% perpetual. The price data...

The mechanism by which aggregate supply creates the income that generates its matching demand (called Say's Law), may not work in a general equilibrium with decentralized markets and savings in bonds or money. Full employment is an equilibrium, but convergence to that state is slow. A...

A simple model of financial market with rational learning and without friction is presented in which the value of private information increases with the mass of informed individuals, contrary to the property presented by Grossman and Stiglitz (1980). The key assumption is the possibility of...

In their paper "Information Acquisition in Financial Markets" (this journal, <xref ref-type="bibr" rid="R1">2000</xref>), Barlevy and Veronesi present a model of a one-period financial market, and claim that for an open set of parameter values, the value of information increases with the mass of informed agents. That claim is shown...