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Regular economies with ambiguity aversion

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  • Biheng, Noé
  • Bonnisseau, Jean-Marc

Abstract

We consider a family of exchange economies with complete markets where consumers have multiprior preferences representing their ambiguity aversion. Under a linear independence assumption, we prove that regular economies are generic. Regular economies exhibit enjoyable properties: odd finite number of equilibrium prices, local constancy of this number, local differentiable selections of the equilibrium prices.

Suggested Citation

  • Biheng, Noé & Bonnisseau, Jean-Marc, 2015. "Regular economies with ambiguity aversion," Journal of Mathematical Economics, Elsevier, vol. 59(C), pages 24-36.
    • Handle: RePEc:eee:mateco:v:59:y:2015:i:c:p:24-36
    DOI: 10.1016/j.jmateco.2015.04.004
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    Cited by:

    1. Noé Biheng, 2016. "A Generalization of the Expenditure Function," Journal of Optimization Theory and Applications, Springer, vol. 168(2), pages 661-676, February.
    2. Noé Biheng, 2014. "A generalization of the expenditure function," Post-Print halshs-01143222, HAL.
    3. Michael Zierhut, 2021. "Generic regularity of differentiated product oligopolies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(1), pages 341-374, February.

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    More about this item

    Keywords

    Demand function; General equilibrium; Ambiguity aversion; Multiprior preferences; Regular economies; Lipschitz behavior;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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