Equilibrium with arbitrary market structure
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Equilibrium with arbitrary market structure. / Grodal, Birgit; Vind, Karl.
In: Economic Theory, Vol. 25, No. 1, 2005, p. 123-134.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Equilibrium with arbitrary market structure
AU - Grodal, Birgit
AU - Vind, Karl
N1 - JEL Classification: D52, D40
PY - 2005
Y1 - 2005
N2 - 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
AB - 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
KW - Faculty of Social Sciences
KW - incomplete markets
KW - coordination
U2 - 10.1007/s00199-004-0515-3
DO - 10.1007/s00199-004-0515-3
M3 - Journal article
VL - 25
SP - 123
EP - 134
JO - Economic Theory
JF - Economic Theory
SN - 0938-2259
IS - 1
ER -
ID: 94029