Analysis of "What’s 2/3 of the Average?"(theincidentaleconomist.com)
theincidentaleconomist.com
Analysis of "What’s 2/3 of the Average?"
http://theincidentaleconomist.com/analysis-of-whats-23-of-the-average/
http://theincidentaleconomist.com/analysis-of-whats-23-of-the-average/
Anyway, this post is applicable to investing and bubbles. How far from common knowledge is assumption about rationality? If it is sufficiently far then it is rational to buy/sell at a price very different from the one that would obtain with common knowledge rationality.