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General Competitive Analysis in an Economy with Private Information
Townsend, Robert M.; Prescott, Edward C. (Center for Economic Research, Department of Economics, University of Minnesota, 1981)
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http://hdl.handle.net/11299/55080
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Title
General Competitive Analysis in an Economy with Private Information
Authors
Issue Date
1981-04
Publisher
Center for Economic Research, Department of Economics, University of Minnesota
Type
Working Paper
Abstract
General competitive analysis is extended to cover a dynamic, pure-exchange economy with privately observed shocks to preferences. In the linear, infinite-dimensional space containing lotteries we establish the existence of optima, the existence of competitive equilibria, that every competitive equilibrium is an optimum, and, with some revealing qualifications, that every optimum can be supported as a competitive equilibrium. An example illustrates that rationing and securities with contrived risk have an equilibrium interpretation.
Appears in collections
Center for Economic Research Discussion Papers [323]
Previously Published Citation
Townsend, R.M. and Prescott, E.C., (1981), "General Competitive Analysis in an Economy with Private Information", Discussion Paper No. 144, Center for Economic Research, Department of Economics, University of Minnesota.
Series/Report Number
Discussion Paper
144
Suggested Citation
Townsend, Robert M.; Prescott, Edward C.. (1981). General Competitive Analysis in an Economy with Private Information. Center for Economic Research, Department of Economics, University of Minnesota. Retrieved from the University of Minnesota Digital Conservancy, http://hdl.handle.net/11299/55080.
Content distributed via the University of Minnesota's Digital Conservancy may be subject to additional license and use restrictions applied by the depositor.