A characterization of robust sunspot equilibria.
In nonconvex environments, a sunspot equilibrium can sometimes be destroyed by the introduction of new extrinsic information. We provide a simple test for determining whether or not a particular equilibrium survives, or is robust to, all possible refinements of the state space. We use this test to p...
| Publicado en: | Journal of Economic Theory Vol. 107; no. 1; pp. 136 - 145 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Academic Press Inc.
November 2002
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | In nonconvex environments, a sunspot equilibrium can sometimes be destroyed by the introduction of new extrinsic information. We provide a simple test for determining whether or not a particular equilibrium survives, or is robust to, all possible refinements of the state space. We use this test to provide a characterization of the set of robust sunspot-equilibrium allocations of a given economy; it is equivalent to the set of equilibrium allocations of the associated lottery economy. Journal of Economic Literature Classification Numbers: D51, D84, E32.|Sc 2002 Elsevier Science (USA) |
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