Technical Report General Equilibrium Model for an Asymmetric Information Economy with Endogenous Resale Upperbounds

Urai, Ken  ,  Yoshimachi, Akihiko  ,  Shiozawa, Kohei

13-27-pp.1 - 13 , 2015-07 , Graduate School of Economics and Osaka School of International Public Policy (OSIPP) Osaka University
* Revised:General Equilibrium Model for an Asymmetric Information Economy [13-27, 2013]
In this paper, we introduce production and the resale problem into the general equilibrium model with asymmetric information proposed by Dubey et al. (2000, 2005). We found that the exogenous delivery upper bound is a crucial assumption for market equilibrium and optimality problems. Importantly, the typical equilibrium allocation of an asymmetric information economy is directly related to the exogenous upper bounds. Hence, to consider market viability problems, we extended the model by introducing an apparatus that expresses the natural costs of the market delivery, so that the delivery upper bounds are determined endogenously.

Number of accesses :  

Other information