Speculative trade under ambiguity

Ambiguous beliefs may lead to speculative trade and bubbles. We demonstrate this by showing that the classical Harrison Kreps (1978) example of among agents with heterogeneous can be replicated having common but ambiguous beliefs. More precisely, we show same asset prices pattern obtained in equilibrium agents' recursive multiple-prior expected utilities set priors. While learning about true probabilities dividends makes bubbles vanish long run under beliefs, it not do so Ambiguity need disappear over time, persist.