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1-Dimensional Normal Competitive Market Equilibrium

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  • Thanawat Sornwanee

Abstract

We introduce a new microeconomics foundation of a specific type of competitive market equilibrium that can be used to study several markets with information asymmetry such as commodity market, credit market, and insurance market.

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  • Thanawat Sornwanee, 2025. "1-Dimensional Normal Competitive Market Equilibrium," Papers 2505.08425, arXiv.org.
    • Handle: RePEc:arx:papers:2505.08425
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    References listed on IDEAS

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    2. Lutz G. Arnold & John G. Riley, 2009. "On the Possibility of Credit Rationing in the Stiglitz-Weiss Model," American Economic Review, American Economic Association, vol. 99(5), pages 2012-2021, December.
    3. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    4. Dwight M. Jaffee & Thomas Russell, 1984. "Imperfect Information, Uncertainty, and Credit Rationing: A Reply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 869-872.
    5. Dwight M. Jaffee & Thomas Russell, 1976. "Imperfect Information, Uncertainty, and Credit Rationing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 651-666.
    6. Wilson, Charles A, 1979. "Equilibrium and Adverse Selection," American Economic Review, American Economic Association, vol. 69(2), pages 313-317, May.
    7. Neale Mahoney & E. Glen Weyl, 2017. "Imperfect Competition in Selection Markets," The Review of Economics and Statistics, MIT Press, vol. 99(4), pages 637-651, July.
    8. Lu, Hengheng & Rong, Kang, 2018. "Unbounded returns and the possibility of credit rationing: A note on the Stiglitz–Weiss and Arnold–Riley models," Journal of Mathematical Economics, Elsevier, vol. 75(C), pages 67-70.
    9. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    10. James D. Hess, 1984. "Imperfect Information and Credit Rationing: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 865-868.
    11. Charles Wilson, 1980. "The Nature of Equilibrium in Markets with Adverse Selection," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 108-130, Spring.
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