论文信息 - Competitive equilibrium with unawareness in economies with production

Competitive equilibrium with unawareness in economies with production

Abstract This paper investigates an extension of the GEI-unawareness framework by Modica et al. (Econ. Theory 12 (1998) 259) to economies with entrepreneurial production. Existence of equilibrium is guaranteed given decreasing returns to scale. Firm's value and investment decision in equilibrium are characterized. An example of commodity innovation shows that the effect of different degrees of awareness on investment decisions depend upon the degree of risk aversion. In the case of log preferences unawareness may not matter for commodity innovation, although this depends on other preference features.

Enrique Kawamura | Enrique Kawamura

[1] S. Modica,et al. Unawareness and Partitional Information Structures , 1999 .

[2] Costis Skiadas,et al. Subjective Probability under Additive Aggregation of Conditional Preferences , 1997 .

[3] David Easley,et al. Choice without beliefs , 1999 .

[4] M. Quinzii,et al. Theory of incomplete markets , 1996 .

[5] O. Hart. On the optimality of equilibrium when the market structure is incomplete , 1975 .

[6] Barton L. Lipman,et al. REPRESENTING PREFERENCES WITH A UNIQUE SUBJECTIVE STATE SPACE , 2001 .

[7] S. Modica,et al. Awareness and partitional information structures , 1994 .

[8] L. J. Savage,et al. The Foundations of Statistics , 1955 .

[9] Aldo Rustichini,et al. Unawareness and bankruptcy: A general equilibrium model , 1998 .

[10] Eddie Dekel,et al. A Unique Subjective State Space for Unforeseen Contingencies , 1997 .

[11] K. Arrow,et al. Notes on Sequence Economies, Transaction Costs, and Uncertainty , 1999 .

[12] L. J. Savage,et al. The Foundations of Statistics , 1955 .

[13] Paolo Ghirardato,et al. Coping with ignorance: unforeseen contingencies and non-additive uncertainty , 2001 .

[14] J. Werner. Equilibrium in economies with incomplete financial markets , 1985 .