Sequentially complete markets remain incomplete

Jacques Dreze and P. Jean-Jacques Herings

No 2003085, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We reconsider the well-known result of Arrow (1953) that the set of equilibria of an economy with complete markets coincides with the one of an economy with sequentially complete markets. We show by means of two examples that this result is problematic when there exist multiple equilibrium continuations to the initial-period component of an intertemporal equilibrium. Some consequences are drawn.

Keywords: sequentially complete markets; rational expectations; time inconsistency (search for similar items in EconPapers)
JEL-codes: D52 D61 (search for similar items in EconPapers)
Date: 2003-11
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Sequentially complete markets remain incomplete (2009)
Journal Article: Sequentially complete markets remain incomplete (2008)
Working Paper: Sequentially complete markets remain incomplete (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2003085

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