Bhowmik, Anuj and Cao, Jiling
(2015):
*Rational Expectations Equilibria: Existence and Representation.*

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## Abstract

In this paper, we continue to explore the equilibrium theory under ambiguity. For a model of a pure exchange and asymmetric information economy with a measure space of agents whose exogenous uncertainty is described by a complete probability space, we establish a representation theorem for a Bayesian or maximin rational expectations equilibrium allocation in terms of a state-wise Walrasian equilibrium allocation. This result also strengthens the theorems on the existence and representation of a (Bayesian) rational expectations equilibrium or a maximin rational expectations equilibrium in the literature.

Item Type: | MPRA Paper |
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Original Title: | Rational Expectations Equilibria: Existence and Representation |

Language: | English |

Keywords: | Asymmetric information; Bayesian rational expectations equilibrium; Maximin rational expectations equilibrium; Pure exchange economy; Walrasian equilibrium. |

Subjects: | D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design |

Item ID: | 63196 |

Depositing User: | Jiling Cao |

Date Deposited: | 25 Mar 2015 09:52 |

Last Modified: | 05 Oct 2019 07:04 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/63196 |