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Keynes argues that a beauty contest in financial markets is a combination of rational higher-order beliefs and market psychology or animal spirits. We find that a stable equilibrium, where also market psychology is included, can be possible if uninformed investors agree to reduce their required rate of return indicating that they enlarge the risk of their investment with the animal spirits component. JEL Classification: G11, G12 53 uninformed. In this article, the proportion of informeddoi:10.7172/2353-6845.jbfe.2018.1.3 fatcat:jsruw5sm2jef7erpmnbmxfoxwu