Access the full text.
Sign up today, get DeepDyve free for 14 days.
E. Miller (1977)
Risk, Uncertainty, and Divergence of OpinionJournal of Finance, 32
M. Rubinstein. (1976)
The Valuation of Uncertain Income Streams and the Pricing of Options
Douglas Breeden (1979)
An Intertemporal Asset Pricing Model with Stochastic Consumption and Investment OpportunitiesERN: Asset Pricing Models (Topic)
Joram Mayshar (1983)
On Divergence of Opinion and Imperfections in Capital MarketsThe American Economic Review, 73
Joseph Williams (1977)
Capital asset prices with heterogeneous beliefsJournal of Financial Economics, 5
J. Lintner (1969)
The Aggregation of Investor's Diverse Judgments and Preferences in Purely Competitive Security MarketsJournal of Financial and Quantitative Analysis, 4
M. Rothschild, J. Stiglitz (1970)
Increasing risk: I. A definitionJournal of Economic Theory, 2
Douglas Breeden, R. Litzenberger (1978)
Prices of State-Contingent Claims Implicit in Option PricesThe Wharton School
(1982)
Expectations and the Structure of Share Prices
R. Jarrow (1980)
Heterogeneous Expectations, Restrictions on Short Sales, and Equilibrium Asset PricesJournal of Finance, 35
Lintner Lintner (December 1969)
“The Aggregation of Investors' Diverse Judgements and Preferences in Purely Competitive Markets.”Journal of Financial and Quantitative Analysis, 4
ABSTRACT We consider an Arrow‐Debreu model with agents who have different subjective probabilities. In general, asset prices will depend only on aggregate consumption and the distribution of subjective probabilities in each state of nature. If all agents have identical preferences then an asset with “more dispersed” subjective probabilities will have a lower price than an asset with less dispersed subjective probabilities if risk aversion does not decline too rapidly. It seems that this condition is likely to be met in practice, so that increased dispersion of beliefs will generally be associated with reduced asset prices in a given Arrow‐Debreu equilibrium.
The Journal of Finance – Wiley
Published: Mar 1, 1985
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.