Equilibrium with arbitrary market structure
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Fifty years ago Arrow [1] introduced contingent commodities and Debreu [4] observed that this reinterpretation of a commodity was enough to apply the existing general equilibrium theory to uncertainty and time. This interpretation of general equilibrium theory is the Arrow-Debreu model. The complete market predicted by this theory is clearly unrealistic, and Radner [10] formulated and proved existence of equilibrium in a multiperiod model with incomplete markets. In this paper the Radner result is extended. Radner assumed a specific structure of markets, independence of preferences, indifference of preferences, and total and transitive preferences. All of these assumptions are dropped here. We - like Radner - keep assumptions implying compactness
Original language | English |
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Journal | Economic Theory |
Volume | 25 |
Issue number | 1 |
Pages (from-to) | 123-134 |
ISSN | 0938-2259 |
DOIs | |
Publication status | Published - 2005 |
- Faculty of Social Sciences - incomplete markets, coordination
Research areas
ID: 94029