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Core and equilibria under ambiguity

Author

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  • Luciano Castro

    ()

  • Marialaura Pesce

    ()

  • Nicholas Yannelis

    ()

Abstract

This paper introduces new core and Walrasian equilibrium notions for an asymmetric information economy with non-expected utility preferences. We prove existence and incentive compatibility results for the new notions we introduce.
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Suggested Citation

  • Luciano Castro & Marialaura Pesce & Nicholas Yannelis, 2011. "Core and equilibria under ambiguity," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 48(2), pages 519-548, October.
  • Handle: RePEc:spr:joecth:v:48:y:2011:i:2:p:519-548 DOI: 10.1007/s00199-011-0637-3
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    References listed on IDEAS

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    7. Guangsug Hahn & Nicholas C. Yannelis, 1997. "Efficiency and incentive compatibility in differential information economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(3), pages 383-411.
    8. Marialaura Pesce & Peter Cramton & Nicholas C. Yannelis, 2010. "A new perspective to rational expectations: maximin rational expectations equilibrium," Discussion Papers 1528, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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    More about this item

    Keywords

    Maximin core; Maximin Walrasian equilibrium; Incentive compatibility; Ambiguity; ex ante; interim and ex post preferences; D51; D6; D8;

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D6 - Microeconomics - - Welfare Economics
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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