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Underemployment of resources and self-fulfilling beliefs: Nonwalrasian allocations at walrasian prices
Herve Cres ()
Antonio Villanacci GSIA Working Papers from Carnegie Mellon University, Tepper School of Business
In a model of exchange with price-taking individuals, the existence of a continuum of nontrivial underemployment equilibria with walrasian prices is proved for a generic set of economies. The likelihood of the occurrence of these equilibria is higher the
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