Characterization and incentive compatibility of Walrasian expectations equilibrium in infinite dimensional commodity spaces |
| |
Authors: | Carlos Hervés-Beloso Emma Moreno-García Nicholas C Yannelis |
| |
Institution: | (1) RGEA, Facultad de Económicas, Universidad de Vigo, 36310 Vigo, Spain;(2) Facultad de Economía y Empresa, Universidad de Salamanca, Campus Miguel de Unamuno, 37007 Salamanca, Spain;(3) Department of Economics, University of Illinois at Urbana-Champaign, IL 61820 Champaign, USA |
| |
Abstract: | Summary. We consider a differential information economy with infinitely many commodities and analyze the veto power of the grand coalition with respect the ability of blocking non-Walrasian expectations equilibrium allocations. We provide two different Walrasian expectations equilibrium equivalence results. First by perturbing the initial endowments in a precise direction we show that an allocation is a Walrasian expectations equilibrium if and only if it is not privately dominated by the grand coalition. The second characterization deals with the fuzzy veto in the sense of Aubin but within a differential information setting. This second equivalence result provides a different characterization for the Walrasian expectations equilibrium and shows that the grand coalition privately blocks in the sense of Aubin any non Walrasian expectations equilibrium allocation with endowment participation rate arbitrarily close to the total initial endowment participation for every individual. Finally, we show that any no free disposal Walrasian expectations equilibria is coalitional Bayesian incentive compatible. Since the deterministic Arrow-Debreu-McKenzie model is a special case of the differential information economy model, one derives new characterizations of the Walrasian equilibria in economies with infinitely many commodities.Received: 29 October 2003, Revised: 24 February 2004, JEL Classification Numbers:
D51, D82, D11.
Correspondence to: Emma Moreno-GarcíaThe authors are grateful to an anonymous referee for his/her careful reading and helpful comments and suggestions.C. Hervés and E. Moreno acknowledge support by Research Grant BEC2000-1388-C04-01 (Ministerio de Ciencia y Tecnología and FEDER); and support by the Research Grant SA091/02 (Junta de Castilla y León). |
| |
Keywords: | Differential information economy Walrasian expectations equilibrium Radner equilibrium Privately non-dominated allocations Private core Aubin private core Coalitional Bayesian incentive compatibility |
本文献已被 SpringerLink 等数据库收录! |
|