A new perspective to rational expectations : maximin rational expectations equilibrium ∗

@inproceedings{Castro2010ANP,
title={A new perspective to rational expectations : maximin rational expectations equilibrium ∗},
author={Luciano Irineu de Castro and Marialaura Pesce and Nicholas C. Yannelis},
year={2010}
}

We introduce a new notion of rational expectations equilibrium (REE) called maximin rational expectations equilibrium (MREE), which is based on the maximin expected utility (MEU) formulation. In particular, agents maximize maximin expected utility conditioned on their own private information and the information that the equilibrium prices generate. Maximin equilibrium allocations need not to be measurable with respect to the private information of each individual and with respect to the… CONTINUE READING