Title: General Equilibrium Model for an Asymmetric Information Economy
Abstract: This paper fs main purpose is to introduce a new concept of the market fs commodity-information structure (a partition of the set of real goods that are treated as one commodity for market ex- changes) on which we base our ordinary static general equilibrium arguments and settings to analyze asymmetric information problems. We concentrate on the market viability problem that is concerned with describing such situations as adverse selection under informational asymmetry among agents as an equilibrium in general equilibrium frameworks. The market equilibrium-existence conditions, non-equilibrium-existence examples, and Pareto-optimal equilibrium-properties are studied.
Publication Year: 2013
Publication Date: 2013-10-01
Language: en
Type: preprint
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Cited By Count: 1
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