Sequentially complete Markets Remain Incomplete

We consider the well-known result of Arrow (1953) that the set of equilibria of an economy with complete markets coincides with the one of an economy with sequentially complete markets. We show by means of two examples that this results is problematic when there exist multiple equilibrium continuations to the initial-period component of an intertemporal equilibrium. Some consequences are drawn.

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Year of publication:	2003
Authors:	Drèze, Jacques H. ; Herings, P. Jean-Jacques
Institutions:	Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization
Subject:	microeconomics

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Extent:	application/pdf
Series:	Research Memoranda.
Type of publication:	Book / Working Paper
Language:	Hungarian
Notes:	The text is part of a series Research Memoranda Number 058
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005670243