João Correia-da-Silva () (FCT. Faculdade de Economia. Universidade do Porto.) Carlos Hervés-Beloso () (RGEA. Facultad de Económicas. Universidad de Vigo.)
Additional information is available for the following
registered author(s):
We propose the notion of objects of choice as uncertain consumption bundles, extending the formulation of Arrow (1953). Agents sign “contracts for uncertain delivery”, which specify a list of alternative bundles, instead of a single one. This allows us to incorporate uncertainty and asymmetric information in the model of Arrow-Debreu. Relatively to the model of Radner (1968), efficiency of trade is increased and some “no trade” situations are avoided, while the classical results still hold: existence of core and competitive equilibrium, core convergence, welfare theorems, etc.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number
165.
Find related papers by JEL classification: C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
This paper has been announced in the following NEP Reports: