On the completeness of complete markets

被引:3
|
作者
Herings, P. Jean-Jacques [1 ]
Rohde, Kirsten I. M. [2 ]
机构
[1] Maastricht Univ, Dept Econ, NL-6200 MD Maastricht, Netherlands
[2] Erasmus Univ, Dept Econ, NL-3000 DR Rotterdam, Netherlands
关键词
time-inconsistency; competitive equilibrium; market completeness; allocational equivalence;
D O I
10.1007/s00199-007-0291-y
中图分类号
F [经济];
学科分类号
02 ;
摘要
We reconsider the allocational invariance of equilibria to different formulations of market completeness. We identify the so-far neglected assumption of sophisticated behavior as being crucial. First, the Arrow-Debreu setting is considered, where markets do not reopen in the future. Second, sequentially complete markets are analyzed, where goods on the spot markets and all contingent one-period ahead commodities can be traded in every state. Finally, complete markets are analyzed, where all possible contingent commodities can be traded at every state. Preferences may be time-consistent or time-inconsistent. A distinction is made between naive and sophisticated behavior.
引用
收藏
页码:171 / 201
页数:31
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