Private Information: Similarity as Compatibility
We investigate the continuity of equilibrium in differential information economies with a finite number of agents. In this setting, agents can make contingent contracts based on events that are commonly observed. With private information modelled as finite partitions of a compact and metrizable space of states of nature, we introduce a topology on information that takes into account the compatibility of information fields in assessing similarity between private information fields. This topology allows us to establish upper semicontinuity of the private core correspondence.
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Volume (Year): 30 (2007)
Issue (Month): 3 (March)
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- Ezra Einy & Ori Haimanko & Diego Moreno & Benyamin Shitovitz, 2005.
"On the continuity of equilibrium and core correspondences in economies with differential information,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(4), pages 793-812, November.
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- Ezra Einy & Diego Moreno & Benyamin Shitovitz, 2001. "Competitive and core allocations in large economies with differential information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 18(2), pages 321-332.
- Erik Balder & Nicholas Yannelis, 2006. "Continuity properties of the private core," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(2), pages 453-464, October.
- Cotter, Kevin D., 1987. "Convergence of information, random variables and noise," Journal of Mathematical Economics, Elsevier, vol. 16(1), pages 39-51, February. Full references (including those not matched with items on IDEAS)
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