The No Trade Principle in General Environments
The no trade principle asserts that risk-neutral agents are not prepared to trade if and only if a common prior exists. The purpose of this article is to provide general versions of this principle. We first study the case when no topological assumption is made on the state space. Bets are uniform limits of bounded measurable functions. We then assume that the state space is completely regular Hausdorff and consider two cases in which bets are continuous functions and bounded continuous functions respectively
|Date of creation:||11 Aug 2004|
|Date of revision:|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Itzhak Gilboa & Antoine Billot & Alain Chateauneuf & Jean-Marc Tallon, 2000.
"Sharing Beliefs: between Agreeing and Disagreeing,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Antoine Billot & Alain Chateauneuf & Itzhak Gilboa & Jean-Marc Tallon, 2000. "Sharing beliefs: between agreeing and disagreeing," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00174553, HAL.
- Billot, A. & Chateauneuf, A. & Gilboa, I. & Tallon, J.-M., 1998. "Sharing Beliefs: Between Agreeing and Disagreeing," Papiers d'Economie MathÃ©matique et Applications 98.30, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Morris, Stephen, 1994. "Trade with Heterogeneous Prior Beliefs and Asymmetric Information," Econometrica, Econometric Society, vol. 62(6), pages 1327-47, November.
- Harsanyi, John C, 1995.
"Games with Incomplete Information,"
American Economic Review,
American Economic Association, vol. 85(3), pages 291-303, June.
- Brandenburger Adam & Dekel Eddie, 1993.
"Hierarchies of Beliefs and Common Knowledge,"
Journal of Economic Theory,
Elsevier, vol. 59(1), pages 189-198, February.
- Paul Milgrom & Nancy L.Stokey, 1979.
"Information, Trade, and Common Knowledge,"
377R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Bhattacharyya, Sugato & Lipman, Barton L, 1995.
"Ex ante versus Interim Rationality and the Existence of Bubbles,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 6(3), pages 469-94, November.
- Barton L. Lipman & Sugato Bhattacharyya, 1995. "Ex ante versus interim rationality and the existence of bubbles," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 6(3), pages 469-494.
- Sugato Bhattacharyya & Barton L. Lipman, 1992. "Ex Ante versus Interim rationality and the existence of bubbles," Working Papers 851, Queen's University, Department of Economics.
- Ng, Man-Chung, 2003. "On the duality between prior beliefs and trading demands," Journal of Economic Theory, Elsevier, vol. 109(1), pages 39-51, March.
- Samet, Dov, 1998.
"Common Priors and Separation of Convex Sets,"
Games and Economic Behavior,
Elsevier, vol. 24(1-2), pages 172-174, July.
When requesting a correction, please mention this item's handle: RePEc:ecm:feam04:630. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.