Jordan, J.S., (1977), "Informational Temporary Equilibria", Discussion Paper No. 89, Center for Economic Research, Department of Economics, University of Minnesota.
This paper studies a dynamic process for the formation of
expectations and the achievement of equilibrium in stochastic
exchange environments. An informational temporary equilibrium
is an exchange equilibrium in which agents' expectations are
conditioned on their initial information and data generated in
previous informational temporary equilibria. An equilibrium is
a temporary equilibrium which reveals no further information.
This process leads to an equilibrium even when the data observed by
agents is insufficient to permit the existence of an expectations
eguilibrium. The relation between equilibrium and expectations
equilibrium is explored, and a characterization of those data
structures whose equilibria are expectations equilibria for a
possibly different data structure is obtained.
Informational Temporary Equilibria.
Center for Economic Research, Department of Economics, University of Minnesota.
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