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Existence and generic efficiency of equilibrium in two-period economies with private state-verification

Author

Listed:
  • João Correia da Silva

    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Carlos Hervés-Beloso

    (Universidad de Vigo)

Abstract

Private state-verification is introduced in a two-period economy with spot markets in both periods and complete futures markets for contingent delivery in the second period. Existence of equilibrium is established, under standard assumptions. The equilibrium allocation is shown to be generically efficient if the number of states is not greater than the number of goods.

Suggested Citation

  • João Correia da Silva & Carlos Hervés-Beloso, 2012. "Existence and generic efficiency of equilibrium in two-period economies with private state-verification," FEP Working Papers 443, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:443
    as

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    File URL: http://www.fep.up.pt/investigacao/workingpapers/12.01.18_wp443.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    General equilibrium; Differential information; Private state-verification; Two-period economies; Existence of equilibrium; Generic efficiency;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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