On the Failure of Core Convergence in Economies with Asymmetric Information

Roberto Serrano, Rajiv Vohra and Oscar Volij ()

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)
Date: 1999-11-11
New Economics Papers: this item is included in nep-mic
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Citations: View citations in EconPapers (2)

Published in Econometrica, 69, 1685--1696 (2001).

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