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The Rational Expectations Hypothesis postulates that the value a variable is expected to take by an economic agent equals the mathematical expected value of that variable conditional on all informatio…
In signaling games, an informed sender moves first. Their action may "signal" information about the sender's type to an uniformed receiver who then acts based on an updated belief.
Input-output models as used by Wassily Leontief.
A situation in which a market fails to produce an efficient (i.e., welfare-maximizing) allocation.
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