The relevance of extrinsic uncertainty

Heracles Polemarchakis and Luigi Ventura
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Heracles Polemarchakis: CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium

No 1995081, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Extrinsic uncertainty is effective at a competitive equilibrium. This is generic if spot markets are inoperative: the only objects of exchange are assets for the contingent delivery of commodities; and the asset market is incomplete. The structure of payoffs of assets may allow for non-trivial allocations invariant with respect to the extrinsic uncertainty, and the economy with a complete asset market may well have a globally unique competitive eqUilibrium. Inoperative spot markets have a natural interpretation in economies with multiple periods; assets cannot be retraded.

Keywords: extrinsic uncertainty; competitive equilibrium (search for similar items in EconPapers)
JEL-codes: D50 D52 D60 D84 (search for similar items in EconPapers)
Date: 1995-12-01
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Related works:
Journal Article: The Relevance of Extrinsic Uncertainty (2001)
Working Paper: The relevance of extrinsic uncertainty (2000)
Working Paper: The Relevance of Extrinsic Uncertainty (2000)
Working Paper: The Relevance of Extrinsic Uncertainty (1995)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1995081

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