On the Failure of Core Convergence in Economies with Asymmetric Information

In interim economies with asymmetric information, we show that the coarse core of Wilson (1978) does not converge to price equilibrium allocations as the economy is replicated. This failure of core convergence is a basic consequence of asymmetric information and extends to any reasonable notion of either (interim) core or price equilibrium.

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Year of publication:	1999-11-11
Authors:	Serrano, Roberto ; Vohra, Rajiv ; Volij, Oscar
Institutions:	Oscar Volij
Subject:	core \| price equilibrium \| asymmetric information \| interim economies \| sunspot economies

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Extent:	application/pdf
Series:	Economic theory and game theory.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published in Econometrica, 69, 1685--1696 (2001).
Classification:	C71 - Cooperative Games ; D51 - Exchange and Production Economies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005178284