Question: Again, using the DHS model, suppose that = 1; 2= 1; 2 = 2; 2 C = 1; and s1 = 2. Describe and comment

  1. Again, using the DHS model, suppose that = 1; 2= 1; 2 = 2; 2 C = 1; and s1 = 2. Describe and comment on the path of prices when overconfident investors determine prices versus the rational path of prices.

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