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Generic non-existence of general equilibrium with EUU preferences under extreme ambiguity

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  • Correia-da-Silva, João

Abstract

In the presence of three or more realisations of the aggregate endowment that are extremely ambiguous, in the sense that all relative probabilities are admissible, if agents have preferences that are representable by expected uncertain utility functions (Gul and Pesendorfer, 2014), general equilibrium does not generically exist in finite economies. It always exists, however, in continuum economies.

Suggested Citation

  • Correia-da-Silva, João, 2015. "Generic non-existence of general equilibrium with EUU preferences under extreme ambiguity," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 185-191.
    • Handle: RePEc:eee:mateco:v:61:y:2015:i:c:p:185-191
    DOI: 10.1016/j.jmateco.2015.09.007
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    References listed on IDEAS

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