TY - JOUR
T1 - On the Core of an Economy with Differential Information
AU - Einy, Ezra
AU - Moreno, Diego
AU - Shitovitz, Benyamin
N1 - Funding Information:
1We thank Oscar Volij, an associate editor and two referees for helpful comments. This work was done while Einy and Shitovitz visited the Department of Economics of the Univer-sidad Carlos III de Madrid. Einy acknowledges the financial support of the Universidad Carlos III de Madrid. Moreno acknowledges the support of the Spanish Ministry of Education, Grant PB97-0091. Shitovitz acknowledges the support of the Spanish Ministry of Education, Grant SAB98-0059.
PY - 2000/10/1
Y1 - 2000/10/1
N2 - We show that the fine core of an atomless exchange economy with differential information is a subset of the ex-post core of the economy. (This inclusion may be proper, and it does not hold for economies with a finite number of traders.) Consequently, every fine core allocation is a selection from the equilibrium corre- spondence of the associated family of full information economies. Moreover, when each trader knows his or her own utility function and his of her own endowment, every fine core allocation is a rational expectations equilibrium allocation. Journal of Economic Literature Classification Numbers: C72, D50.
AB - We show that the fine core of an atomless exchange economy with differential information is a subset of the ex-post core of the economy. (This inclusion may be proper, and it does not hold for economies with a finite number of traders.) Consequently, every fine core allocation is a selection from the equilibrium corre- spondence of the associated family of full information economies. Moreover, when each trader knows his or her own utility function and his of her own endowment, every fine core allocation is a rational expectations equilibrium allocation. Journal of Economic Literature Classification Numbers: C72, D50.
KW - Differential information; fine core; ex-post core; rational expectations equilibrium
UR - http://www.scopus.com/inward/record.url?scp=0000233367&partnerID=8YFLogxK
U2 - 10.1006/jeth.2000.2673
DO - 10.1006/jeth.2000.2673
M3 - Article
AN - SCOPUS:0000233367
SN - 0022-0531
VL - 94
SP - 262
EP - 270
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 2
ER -