Questions tagged [radner-equilibrium]
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How can I find a Radner equilibrium?
Consider an economy with 2 consumers and 1 good. There are 2 dates, date 0 and date 1. At date 1 there are 3 states of nature. The utility functions for the 2 consumers are the same:
$$u_i(x_i)=\frac{...
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Arrow debreu equilibrium or Radner equilibrium and spot prices
Suppose there are 2 states, 2 goods and 2 consumers and consumers have identical expected utility function:
$U^i (x)= \sum_{s=1,2} \pi_s (\ln x_{1s}+\ln x_{2s} )$ where $\pi=(1/3,2/3)$.
Endowments are ...
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Conditions for Radner Equilibrium
This is definition of Radner Equilibrium from Microeconomic Theory (Mas-Collel, Whinston and Green - Third Edition).
I'm confused about two conditions:
$\sum_k q_k \cdot z_{ki} \le 0$ (in yellow)
The ...
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Budget constraint in Radner Sequential Trade Equilibria
Suppose that $q$ is a k-tuple vector of prices for the k assets whose quantities are given by the k-tuple $\theta$. I have just read that in the Radner Sequential Trade Equilibrium (not sure if this ...
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Complete markets: security market equlibrium same as contingent commodity equilibrium?
"For complete markets, the security market equilibrium is the same as the contingent commodity equilibrium but with far fewer spot markets."
I wrote this down in my notes today on what my professor ...
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