Tag Archives: Bayesian Nash

Critically evaluate the claim that in a Bayesian Nash equilibrium it is the follower who leads.

Derive an algebraic expression for the intertemporal budget constraint using c1 and c2 as period 1 and 2 consumption levels, p1 and p2 as period 1 and 2 price levels, and ρ as the real interest rate Is it better to be a borrower or a lender when ρ falls? Use indifference curve analysis to […]