The study of the generic existence of rational expectations equilibrium has concentrated on three cases, according to whether the space of "states of private information" has dimension less than, equal to, or greater than the price space. Previous results have shown that in the first case fully revealing equilibria exist generically and in the second case there are open sets of environments with no equilibrium. This paper shows that in the third case there is a residual set of environments which permits equilibria which are arbitrarily close to fully revealing.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics