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Non-Optimality of Rational Expectations Equilibrium: the Complete Markets Case

Paulo C. Coutinho

The Review of Economic Studies · 1986 · Volume 53 · Issue 5

DOI: 10.2307/2297725

Abstract

In this note we show that the conditions that guarantee uniqueness and optimality of Walrasian equilibrium under uncertainty are not sufficient to guarantee these results for non-noisy rational expectations equilibrium under asymmetric information.

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