Dubey, Pradeep; Geanakoplos, John; Shubik, Martin - Cowles Foundation for Research in Economics, Yale University - 2001
thinking of assets as pools. The equilibrating variables include expected delivery rates, along with the usual prices of assets … refinement, which we propose in order to rule out irrational pessimism about deliveries of untraded assets. We show that refined … assets. The market chooses the promises, default penalties, and quantity constraints of actively traded assets. …