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Equilibrium theory with asymmetric information and infinitely many states

Monteiro, Paulo K.; Martins-da-Rocha, Victor-Filipe; Hervés-Beloso, Carlos (2009), Equilibrium theory with asymmetric information and infinitely many states, Economic Theory, 38, 2, p. 295-320. http://dx.doi.org/10.1007/s00199-008-0359-3

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Type
Article accepté pour publication ou publié
Date
2009
Journal name
Economic Theory
Volume
38
Number
2
Publisher
Springer
Pages
295-320
Publication identifier
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Author(s)
Monteiro, Paulo K.
Martins-da-Rocha, Victor-Filipe cc
Hervés-Beloso, Carlos
Abstract (EN)
Radner (1968) proved existence of a competitive equilibrium for differential information economies with finitely many states. We extend this result to economies with infinitely many states of nature. Each agent observes a public and a private signal. The publicly observed signal may take infinitely many values but, in order to get existence, we assume that private signals only take finitely many values. Actually, there is no hope to get a general existence result since Podczeck, Tourky and Yannelis (2008) already proposed non-existence results.
Subjects / Keywords
Competitive Equilibrium; Properness; Assymetric Information; Continuum of States
JEL
D51 - Exchange and Production Economies
D82 - Asymmetric and Private Information; Mechanism Design