Some New Results on Information Percolation

Published Online:https://doi.org/10.1287/12-SSY066

We study the dynamics of a large number, N, of investors which have meetings by groups of m. We obtain an explicit formula for the solution of the associated non-linear system of differential equations. This formula is tractable and it enables us to show the asymptotic stability of a large class of models. One of those models can be thought of as an interacting portfolio market.

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