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[1] By assuming that both types of agent always have “deep enough pockets” to purchase all of the asset, the model takes wealth dynamics off the table. The Harrison-Kreps model generates high trading volume when the state changes either from 0 to 1 or from 1 to 0." ] } ], "metadata": { "filename": "harrison_kreps.rst", "kernelspec": { "display_name": "Julia 1.2", "language": "julia", "name": "julia-1.2" }, "language_info": { "file_extension": ".jl", "mimetype": "application/julia", "name": "julia", "version": "1.2.0" }, "title": "Asset Pricing III: Incomplete Markets" }, "nbformat": 4, "nbformat_minor": 2 }