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Coalitional extreme desirability in finitely additive economies with asymmetric information

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  • Bhowmik, Anuj
  • Centrone, Francesca
  • Martellotti, Anna

Abstract

We prove a coalitional core-Walras equivalence theorem for an asymmetric information exchange economy with a finitely additive measure space of agents, finitely many states of nature, and an infinite dimensional commodity space having the Radon–Nikodym property and whose positive cone has possibly empty interior. The result is based on a new cone condition, firstly developed in Centrone and Martellotti (2015), called coalitional extreme desirability. We also formulate a notion of incentive compatibility suitable for coalitional models and study it in relation to equilibria.

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  • Bhowmik, Anuj & Centrone, Francesca & Martellotti, Anna, 2019. "Coalitional extreme desirability in finitely additive economies with asymmetric information," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 83-93.
    • Handle: RePEc:eee:mateco:v:84:y:2019:i:c:p:83-93
    DOI: 10.1016/j.jmateco.2019.07.003
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    1. Bhowmik, Anuj & Centrone, Francesca & Martellotti, Anna, 2019. "Coalitional extreme desirability in finitely additive economies with asymmetric information," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 83-93.
    2. Niccolò Urbinati, 2023. "The Walrasian objection mechanism and Mas-Colell’s bargaining set in economies with many commodities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(1), pages 45-68, July.

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    More about this item

    Keywords

    Asymmetric information; Coalitional economies; Core-Walras equivalence; Finitely additive measure; Walrasian expectation equilibria; Private core;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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