On the Core of an Economy with Differential Information

Ezra Einy, Diego Moreno, Benyamin Shitovitz

Research output: Contribution to journalArticlepeer-review

18 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)262-270
Number of pages9
JournalJournal of Economic Theory
Volume94
Issue number2
DOIs
StatePublished - 1 Oct 2000

Keywords

  • Differential information; fine core; ex-post core; rational expectations equilibrium

ASJC Scopus subject areas

  • Economics and Econometrics

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