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
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: | 01 Apr 2024 08:20 |
| URI: | http://eprints.lse.ac.uk/id/eprint/46333 |
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