Economic Theory

, Volume 63, Issue 1, pp 51–72 | Cite as

Endogenous differential information

  • Sebastián Cea-Echenique
  • Carlos Hervés-Beloso
  • Juan Pablo Torres-Martínez
Research Article


We include endogenous differential information in a model with sequential trade and incomplete financial participation. Agents update information through market signals given by commodity prices and asset deliveries. Information acts over admissible strategies and consumption tastes, allowing discontinuities in preferences and choice sets. Therefore, equilibrium may cease to exist. However, internalizing the compatibility between information and consumption through preferences, and without requiring either financial survival assumptions or fully revealing prices, equilibrium existence can be ensured.


Endogenous differential information Restricted participation Rational expectations equilibrium Incomplete markets 

JEL Classification

D52 D53 D82 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2015

Authors and Affiliations

  1. 1.Paris School of Economics - University Paris 1ParisFrance
  2. 2.RGEA, Facultad de EconómicasUniversidad de VigoVigoSpain
  3. 3.Department of Economics, Faculty of Economics and BusinessUniversity of ChileSantiagoChile

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