Irrelevance of private information in two-period economies with more goods than states of nature

Joao Correia-da-Silva and Carlos Hervés-Beloso

Economic Theory, 2014, vol. 55, issue 2, 439-455

Abstract: We introduce a two-period economy with asymmetric information about the state of nature that occurs in the second period. Each agent is endowed with an information structure that describes her (incomplete) ability to prove whether or not a state has occurred. We show that if the number of states of nature is not greater than the number of goods, then, generically, the equilibria of the associated full information economy are also equilibria of the asymmetric information economy. The information structures of the agents are, in that sense, irrelevant. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: General equilibrium; Asymmetric information; Private state-verification; Two-period economies; Generic existence of equilibrium; Generic efficiency; C62; C72; D51; D82 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (9)

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Working Paper: Irrelevance of private information in two-period economies with more goods than states of nature (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:55:y:2014:i:2:p:439-455

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DOI: 10.1007/s00199-013-0755-1

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