The Relevance of Extrinsic Uncertainty.

Extrinsic uncertainty is effective at a competitive equilibrium. This is generic if spot markets are inoperative: the only objects of exchange are assets for the contingent delivery of commodities; and the asset market is incomplete. The structure of payoffs of assets may allow for non-trivial allocations invariant with respect to the extrinsic uncertainty, and the economy with a complete asset market may well have a globally unique competitive equilibrium.

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Year of publication:	1995
Authors:	Polemarchakis, H ; Ventura, L
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	ECONOMIC EQUILIBRIUM \| COMPETITION \| SOCIAL WELFARE \| UNCERTAINTY

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Series:	Papers.
Type of publication:	Book / Working Paper
Notes:	13 pages
Classification:	D50 - General Equilibrium and Disequilibrium. General ; D52 - Incomplete Markets ; D60 - Welfare Economics. General ; D84 - Expectations; Speculations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005207637