A price mechanism in economies with asymmetric information
AbstractIn this paper we consider a pure exchange economy with a finite set of types of agents which have incomplete and asymmetric information on the states of nature. Our aim is to describe the equilibrium price formation and how the lack of information may affect the allocation of resources. For it, we adapt to an asymmetric information scenario a variant of the Shapley-Shubik game introduced by Dubey and Geanakoplos (2003).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15176.
Date of creation: 27 Apr 2009
Date of revision:
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-16 (All new papers)
- NEP-CTA-2009-05-16 (Contract Theory & Applications)
- NEP-GTH-2009-05-16 (Game Theory)
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- Einy, Ezra & Moreno, Diego & Shitovitz, Benyamin, .
"Competitive and core allocations in large economies with differential information,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/4223, Universidad Carlos III de Madrid.
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- Herves-Beloso, Carlos & Moreno-Garcia, Emma & Yannelis, Nicholas C., 2005. "An equivalence theorem for a differential information economy," Journal of Mathematical Economics, Elsevier, vol. 41(7), pages 844-856, November.
- Marta Faias & Emma Moreno-García, 2010. "Incomplete financial markets and differential information," Economic Theory, Springer, vol. 43(2), pages 189-206, May.
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