Cookies?
Library Header Image
LSE Research Online LSE Library Services

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.

Identification Number: 10.1007/s00199-012-0717-z

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: 14 Sep 2024 05:40
URI: http://eprints.lse.ac.uk/id/eprint/46333

Actions (login required)

View Item View Item