Risk sharing and retrading in incomplete markets

Gottardi, Piero and Rahi, Rohit ORCID: 0000-0001-6887-9160 (2013) Risk sharing and retrading in incomplete markets. Economic Theory, 54 (2). pp. 287-304. ISSN 0938-2259

Full text not available from this repository.

• Author

Abstract

At a competitive equilibrium of an incomplete-markets economy agents’ marginal valuations for the tradable assets are equalized ex-ante. We characterize the finest partition of the state space conditional on which this equality holds for any economy. This leads naturally to a necessary and sufficient condition on information that would induce agents to retrade, if such information was to become publicly available after the initial round of trade.

Item Type:	Article
Official URL:	http://www.springer.com/economics/economic+theory/...
Additional Information:	© 2012 Springer Verlag
Divisions:	Economics Finance Financial Markets Group
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
JEL classification:	D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D52 - Incomplete Markets D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General
Date Deposited:	25 Apr 2013 14:41
Last Modified:	01 Feb 2025 08:01
URI:	http://eprints.lse.ac.uk/id/eprint/46333

Actions (login required)

View Item