Economic dynamics and information. (Q2503444)

Many important economic decisions involve fundamental uncertainty, in the sense that the agents do not know the list of all possible relevant events. However even such uncertainty does not imply complete ignorance, because of the existence of stabilizing social practices. And complete knowledge does not exist for agents at the time of making the most relevant decisions. In this book, the author shows how agents can learn private information about partners from asset prices by analyzing the arbitrage opportunities of financial markets. He shows that one can define an equilibrium that embeds the way agents infer information from asset prices. Moreover, the author models how cooperation and trust emerge and shift adaptively as relations evolve in a context of a system of buyersupplier relations. Additionally he analyzes the existence of equilibria in economies having a measured space of agents and a continuum of agents commodities.