Equilibrium with arbitrary market structure

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  • Birgit Grodal
  • Karl Vind
Fifty years ago Arrow [1] introduced contingent commodities and Debreu [4] observed that this reinterpretation of a commodity was enough to apply the existing general equilibrium theory to uncertainty and time. This interpretation of general equilibrium theory is the Arrow-Debreu model. The complete market predicted by this theory is clearly unrealistic, and Radner [10] formulated and proved existence of equilibrium in a multiperiod model with incomplete markets. In this paper the Radner result is extended. Radner assumed a specific structure of markets, independence of preferences, indifference of preferences, and total and transitive preferences. All of these assumptions are dropped here. We - like Radner - keep assumptions implying compactness
Original languageEnglish
JournalEconomic Theory
Volume25
Issue number1
Pages (from-to)123-134
ISSN0938-2259
DOIs
Publication statusPublished - 2005

ID: 94029