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- Title
The Non-existence of Informational Equilibria.
- Authors
Green, Jerry
- Abstract
In this paper, a counter-example to the existence of such an equilibrium is presented. It is possible to construct such an example by giving discontinuous density functions to the distributions of the random influences underlying this system. Recent works by Jordan and Kreps explore the problems inherent in such systems. The example given in this paper, however, has all of the regularity properties one would usually expect to be sufficient to guarantee the existence of a general equilibrium. We then discuss the meaning and implications of such instances of non-existence. It seems to be due to the fact that the space of prices is not "large" enough, in a certain sense, to transmit all of the relevant data. A more detailed discussion must await the presentation of the model and the example, to be given in Section 2. In Section 3 we discuss whether such an example is robust and present some of its further implications.
- Subjects
ECONOMIC equilibrium; ECONOMIC stabilization; PRICING; COMMERCIAL products; STAGNATION (Economics); MARKET equilibrium; ECONOMICS; MARKETS
- Publication
Review of Economic Studies, 1977, Vol 44, Issue 3, p451
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2296901