Economic Theory

, Volume 51, Issue 3, pp 729–755 | Cite as

General equilibrium in economies with uncertain delivery

Research Article

Abstract

We consider a general equilibrium model of trade ex ante with differential information in which agents choose plans of state-contingent lists of bundles. Being unable to verify that the state of nature is s and not t, an agent has to accept the delivery of any bundle in the list for delivery in state s or in the list for delivery in state t. Under the assumption that each state of nature can be verified by at least one agent, we establish existence of equilibrium and we show that the equilibrium allocation satisfies a notion of coalitional incentive compatibility.

Keywords

General equilibrium Differential information Verifiability Uncertain delivery Lists of bundles Rational behavior 

JEL Classification

C62 D51 D82 

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Copyright information

© Springer-Verlag 2011

Authors and Affiliations

  1. 1.CEF.UP and Faculdade de EconomiaUniversidade do PortoPortoPortugal
  2. 2.RGEA, Facultad de EconómicasUniversidad de VigoVigoSpain

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