Boisdeffre, Lionel De - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2015
[1975] and Radner [1979] equilibrium always existed in this model, as long as agents' anticipations precluded arbitrage. The … suggest it may be otherwise. We propose to show that agents, whose prior anticipation sets yield an arbitrage, may update … infer smaller arbitrage-free anticipation sets, which can not be narrowed down any further. Once these sets are attained …