Consider the model proposed in Daniel et al. [516, Section III] and described in Sect. 9.3, with

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Consider the model proposed in Daniel et al. [516, Section III] and described in Sect. 9.3, with uninformed agents and overconfident agents, assuming that the overconfidence of informed traders depends on the outcome of the public signal \(\tilde{s}_{2}\) released at date \(t=2\). Prove Proposition 9.13.

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