Bhowmik, Anuj and Cao, Jiling (2011): Infinite dimensional mixed economies with asymmetric information.

PDF
MPRA_paper_35618.pdf Download (284Kb)  Preview 
Abstract
In this paper, we study asymmetric information economies consisting of both nonnegligible and negligible agents and having ordered Banach spaces as their commodity spaces. In answering a question of HervesBeloso and MorenoGarcia in [17], we establish a characterization of Walrasian expectations allocations by the veto power of the grand coalition. It is also shown that when an economy contains only negligible agents a Vind's type theorem on the private core with the exact feasibility can be restored. This solves a problem of Pesce in [20].
Item Type:  MPRA Paper 

Original Title:  Infinite dimensional mixed economies with asymmetric information 
English Title:  Infinite dimensional mixed economies with asymmetric information 
Language:  English 
Keywords:  Asymmetric information; Exactly feasible; Expost core; mixed economy; NYfine core; NYprivate core; Robustly efficient allocation; NYstrong fine core; RWfine core; Walrasian expectations allocation 
Subjects:  C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C71  Cooperative Games D  Microeconomics > D4  Market Structure and Pricing > D41  Perfect Competition D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D82  Asymmetric and Private Information; Mechanism Design D  Microeconomics > D5  General Equilibrium and Disequilibrium > D51  Exchange and Production Economies D  Microeconomics > D4  Market Structure and Pricing > D43  Oligopoly and Other Forms of Market Imperfection 
Item ID:  35618 
Depositing User:  Jiling Cao 
Date Deposited:  29. Dec 2011 04:32 
Last Modified:  16. Feb 2013 00:29 
References:  1. C.D. Aliprantis, K.C. Border, Infinite dimensional analysis: A hitchhiker's guide, Third edition, Springer, Berlin, 2006. 2. L. Angeloni and V. Filipe MartinsdaRocha, Large economies with differential information and without disposal, Econ. Theory {\bf 38} (2009), 263286. 3. K.J. Arrow, G. Debreu, Existence of an equilibrium for a competitive economy, Econometrica {\bf 22} (1954), 265290. 4. R.J. Aumann, Markets with a continuum of traders, Econometrica {\bf 32} (1964), 3950. 5. A. Bhowmik, J. Cao, On the core and Walrasian expectations equilibrium in infinite dimensional commodity spaces, Econ. Theory, Submitted. 6. G. Debreu, Theory of value: an axiomatic analysis of economic equilibrium, John Wiley \& Sons, New York, 1959. 7. G. Debreu, H.E. Scarf, A limit theorem on the core of an economy, Int. Econ. Rev. {\bf 4} (1963), 235246. 8. A. De Simone, M.G. Graziano, Cone conditions in oligopolistic market models, Math. Social Sci. {\bf 45} (2003), 5373. 9. E. Einy, D. Moreno, B. Shitovitz, On the core of an economy with differential information, J. Econ. Theory {\bf 94} (2000), 262270. 10. E. Einy, D. Moreno, B. Shitovitz, Competitive and core allocations in large economies with differential information, Econ. Theory {\bf 18} (2001), 321 332. 11. \"{O}. Evren, F. H\"{u}sseinov, Theorems on the core of an economy with infinitely many commodities and consumers, J. Math. Econ. {\bf 44} (2008), 11801196. 12. J. Greenberg, B. Shitovitz, A simple proof of the equivalence theorem for olipogolistic mixed markets, J. Math. Econ. {\bf 15} (1986), 7983. 13. B. Grodal, A second remark on the core of an atomless economy, Econometrica {\bf 40} (1972), 581583. 14. C. Herv\'{e}sBeloso, E. MorenoGarc\'{i}a, C. N\'{u}\~{n}ezSanz, M.R. P\'{a}scoa, Blocking efficiency of small coalitions in myopic economies, J. Econ. Theory {\bf 93} (2000), 7286. 15. C. Herv\'{e}sBeloso, E. MorenoGarc\'{i}a, N.C. Yannelis, An equivalence theorem for a differential information economy, J. Math. Econ. {\bf 41} (2005), 844856. 16. C. Herv\'{e}sBeloso, E. MorenoGarc\'{i}a, N.C. Yannelis, Characterization and incentive compatibility of Walrasian expectations equilibrium in infinite dimensional commodity spaces, Econ. Theory {\bf 26} (2005), 361381. 17. C. Herv\'{e}sBeloso, E. MorenoGarc\'{i}a, Competitive equilibria and the grand coalition, J. Math. Econ. {\bf 44} (2008), 697706. 18. C. Herv\'{e}sBeloso, C. Meo, E. MorenoGarc\'{i}a, On core solutions in economies with assymetric information, MPRA Paper No. 30258, 2011. 19. L.W. McKenzie, On the existence of general equilibrium for a competitive market, Econometrica {\bf 27} (1959), 5471. 20. M. Pesce, On mixed markets with asymmetric information, Econ. Theory {\bf 45} (2010), 2353. 21. R. Radner, Competitive equilibrium under uncertainty, Econometrica {\bf 36} (1968), 3158. 22. R. Radner, Equilibrium under uncertainty, pp. 9231006 in Handbook of Mathematical Economics, Vol 2, North Holland, Amsterdam, 1982. 23. D. Schmeidler, A remark on the core of an atomless economy, Econometrica {\bf 40} (1972), 579580. 24. B. Shitovitz, Oligopoly in markets with a continuum of traders, Econometrica {\bf 41} (1973), 467501. 25. J.J. Uhl, Jr., The range of a vector valued measure, Proc. Amer. Math. Soc. {\bf 23} (1969), 158163. 26. K. Vind, A third remark on the core of an atomless economy, Econometrica {\bf 40} (1972), 585586. 27. R. Wilson, Information, efficiency, and the core of an economy, Econometrica {\bf 46} (1978), 807816. 28. N.C. Yannelis, The core of an economy with differential information, Econ. Theory {\bf 1} (1991), 183197. 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/35618 