The purpose of this paper is twofold. First, it introduces a new version of the Edgeworth process with trading activities centered around self- interested enterprising arbitragers; and second, it examines how the prices of the derived securities are determined under this process. We show that...

The presence of externality, indivisibility, and uncertainty destroys the market's ability to coordinate production. Entrepreneurs rise to organize production by assuming a part of the allocative role traditionally reserved exclusively to the market. Assume that there are three classes of...

Despite its elegance and beauty, the neoclassical model [see Debreu, 1959] has long been a subject of dissension. Critics of the Model are concerned (for example), with (1) its reticence on the raison d’etre of the firm and the boundary between the firm and market, (2) whether this equilibrium...