01978cas a2200277 a 4500 AALejournalIMF007041 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455217939 1018-5941 BD-DhAAL BD-DhAAL Rochon, Celine. Conformism and Public News / Celine Rochon, Gabriel Desgranges. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study a model where investment decisions are based on investors' information about the unknown and endogenous return of the investment. The information of investors consists of endogenously determined messages sold by financial analysts who have access to both public and private information on the return of the investment. We assume that the return of the investment is correlated with the aggregate investment. This results into a beauty contest among analysts (or a "conformism" effect). In equilibrium, analysts sell all the information they have to all the investors. A striking result is that there are sometimes multiple equilibria. There are equilibria where the beauty contest is exacerbated. Because of the correlation across analysts' information sources, not all the information available in the economy is transmitted to investors. Mode of access: Internet Monopolistic Competition imf WP imf Desgranges, Gabriel. IMF Working Papers; Working Paper ; No. 2011/033 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/033/001.2011.issue-033-en.xml IMF e-Library