Nonexistence of constrained Efficient Equilibria when Markets are Incomplete

We consider economies with incomplete markets, production, and a given distribution of initial endowments. The main purpose of the paper to present a robust example of an econmy with only one firm and one good per state in which no production dicision entails a constrained efficient outcome. In particular, the unique Dréze equilibrium is dominated by every other production decision.

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Year of publication:	2001-08
Authors:	Dierker, Egbert ; Dierker, Hildegard ; Grodal, Birgit
Institutions:	University of Vienna, Department of Economics

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Extent:	application/pdf
Series:	Vienna Economics Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	D2 - Production and Organizations ; D52 - Incomplete Markets ; D61 - Allocative Efficiency; Cost-Benefit Analysis ; G1 - General Financial Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005623018