We show that when bankruptcy, subject to penalties, is allowed, it is possible to prove the existence of equilibrium in a model with a continuum of states without imposing any assumptions on ex-post endowments.

We discuss the issue, raised by Mas-Colell (1991) whether the local uniqueness (relative to the L∞ topology) may be a generic property of equilibria in incomplete markets economies with a continuum of states.

We demonstrate the existence of an optimal, individually rational, and incentive compatible selling mechanism for a multiproduct monopolist facing a market populated by consumers with budget constraints. Our main contribution is to show that, in general, when facing consumers with budget...

In this note I prove the existence of the optimal-pay auction when signals are correlated.