Coalitional Extreme Desirability in Finitely Additive Economies with Asymmetric Information

Bhowmik, Anuj and Centrone, Francesca and Martellotti, Anna (2016): Coalitional Extreme Desirability in Finitely Additive Economies with Asymmetric Information.

Abstract

We prove a coalitional core-Walras equivalence theorem for an asymmetric information exchange economy with a finitely additive measure space of agents, finitely many states of nature, and an infinite dimensional commodity space having the Radon-Nikodym property and whose positive cone has possibly empty interior. The result is based on a new cone condition, firstly developed in Centrone and Martellotti (2015), called coalitional extreme desirability. As a consequence, we also derive a new individualistic core-Walras equivalence result.

• Item Type: MPRA Paper
• Language: English
• Keywords: Asymmetric information; Coalitional economies; Core-Walras equivalence; Extremely desirable commodity; Finitely additive measure; Walrasian expectation equilibria; Private core; Radon-Nikodym property.
• 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

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