We consider a version of the intertemporal general equilibrium model of Cox et al. (Econometrica 53:363–384, <CitationRef CitationID="CR10">1985</CitationRef>) with a single production process and two correlated state variables. It is assumed that only one of them, Y <Subscript>2</Subscript>, has shocks correlated with those of the economy’s output rate...</subscript></citationref>

We develop a model of general equilibrium with trade ex ante in a context of private and incomplete state verification. Instead of choosing bundles, agents choose lists of bundles out of which the market then selects one bundle for delivery. With agents having subjective expectations about the...

We introduce a two-period economy with asymmetric information about the state of nature that occurs in the second period. Each agent is endowed with an information structure that describes her (incomplete) ability to prove whether or not a state has occurred. We show that if the number of states...

A free daily newspaper distributes news to readers and sells ad-space to advertisers, having private information about its audience. For a given number of distributed copies, depending on the type of audience (favorable or unfavorable), the newspaper may either have a large readership or a small...