On the Failure of Core Convergence in Economies with Asymmetric Information

Roberto Serrano (), Rajiv Vohra () and Oscar Volij
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Oscar Volij: Department of Economics, Brown University, and Department of Economics, Hebrew University of Jerusalem., http://volij.co.il/

Economic theory and game theory from Oscar Volij

Abstract: In interim economies with asymmetric information, we show that the coarse core of Wilson (1978) does not converge to price equilibrium allocations as the economy is replicated. This failure of core convergence is a basic consequence of asymmetric information and extends to any reasonable notion of either (interim) core or price equilibrium.

Keywords: core; price equilibrium; asymmetric information; interim economies; sunspot economies. (search for similar items in EconPapers)
JEL-codes: C71 D51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 1999-11-11
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Published in Econometrica, 69, 1685--1696 (2001).

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Related works:
Working Paper: On the Failure of Core Convergence in Economies with Asymmetric Information (1999)
Working Paper: On the Failure of Core Convergence in Economies with Asymmetric Information (2000)
Journal Article: On the Failure of Core Convergence in Economies with Asymmetric Information (2001)
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