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

Joao Correia-da-Silva and Carlos Hervés-Beloso

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

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.

Keywords: General equilibrium; Asymmetric information; Private state-verification; Two-period economies; Generic existence of equilibrium; Generic efficiency (search for similar items in EconPapers)
JEL-codes: C62 C72 D51 D82 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2012-12
New Economics Papers: this item is included in nep-cta and nep-mic
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Related works:
Journal Article: Irrelevance of private information in two-period economies with more goods than states of nature (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:473

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