Abstract
We provide a definition of the rational expectations core in an atomless economy with asset markets and show that allocations in the core can be decentralized, via a system of asset and spot prices, as rational expectations equilibria.
On different occasions I have benefited from discussions with R. Anderson, B. Grodal, H. Haller, M. Kaneko, J-F. Mertens, H. Polemarchakis, A. Rustichini and L. Zhou. I would like to thank all of the above individuals for their insightful comments. Certainly, I am responsible for any remaining errors.
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Koutsougeras, L.C. (1999). On an Edgeworth characterization of rational expectations equilibria in atomless asset market economies. In: Alkan, A., Aliprantis, C.D., Yannelis, N.C. (eds) Current Trends in Economics. Studies in Economic Theory, vol 8. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-03750-8_16
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DOI: https://doi.org/10.1007/978-3-662-03750-8_16
Publisher Name: Springer, Berlin, Heidelberg
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