Topic > Rational Expectation Concept - 1015

This situation is still extreme because the trader's profit does not depend on the type of trader, and their utility also directly depends on their own typeRational Expectation Equilibrium: Rational Expectation is “Rander equilibrium” with that customer has some belief ρ such that ρ(θ) = q(θ). This shows that the customer knows the hidden information about the price. For each θ the customer's belief is Let qf(θ) be any ordinary Rander equilibrium price related to the expectation. While the spot price is in the complete information of the Rander equilibrium, when the customers are of type θ and similarly there is the equilibrium consumption plan of the customer in the complete information. The idea of ​​rational expectation, here we show the change in the customer's decision for any change in his prices, however, the customer can be rational, in the sense that he has complete information about the brand, the location of the hotel and other structures. But due to the limitations of the mathematical approach, the only information we have in the literature is related to its price. However, there are future research opportunities to form a general equilibrium model that covers everyone