Regular economies with ambiguity aversion
We consider a family of exchange economies where consumers have multiprior preferences representing their ambiguity aversion. Under a linear independence assumption, we prove that regular economies are generic. Regular economies exhibit enjoyable properties: odd finite number of equilibrium prices, local constancy of this number and local differentiable selections of the equilibrium prices. Thus, even if ambiguity aversion is represented by non-differentiable multiprior preferences, economies retain generically the properties of the differentiable approach.
|Date of creation:||Dec 2013|
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|Publication status:||Published in Documents de travail du Centre d'Economie de la Sorbonne 2013.83 - ISSN : 1955-611X. 2013|
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