id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
work_6jbzr4d47nelnbaoovqhvgbj7y	Franklin Allen	Beauty Contests and Iterated Expectations in Asset Markets	2006	34	.pdf	application/pdf	15197	3588	89	In a financial market where traders are risk averse and short lived and prices are noisy, asset prices today depend on the average expectation today of tomorrow's role of higher-order beliefs in a fully rational asset pricing model. has, until recently, failed to develop models that validate the role of higherorder beliefs in asset pricing. role of higher-order expectations in an asset-pricing context, and thereby to The price of an asset today is the discounted expected value did focus on asset pricing issues, showing that, in noisy rational expectations equilibria (unlike in a The CARAnormal noisy rational expectations asset prices of this article inherit between the asset price and the average expectation of fundamentals). traders exhibits the following features: prices reflect average expectations of More precisely, there is no ''universal equivalent martingale measure'' (i.e., no one probability distribution that could be used to price assets conditional on each trader's information).	./cache/work_6jbzr4d47nelnbaoovqhvgbj7y.pdf	./txt/work_6jbzr4d47nelnbaoovqhvgbj7y.txt