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Uniqueness in currency crisis models. (Research Notes).

Publication: International Advances in Economic Research
Publication Date: 01-MAY-03
Format: Online
Delivery: Immediate Online Access
Full Article Title: Uniqueness in currency crisis models. (Research Notes).(Brief Article)

Article Excerpt
Speculative attack models typically have multiple equilibrium solutions. When choosing the equilibrium strategy a trader faces Knightian uncertainty about the choice of the other traders. The author shows that the concept of Choquet expected utility maximization under Knightian uncertainty leads to unique equilibria.

In speculative attack models the individual...

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