Arbeitspapier

Equilibrium blocking in large quasilinear economies

We study information transmission in large interim quasilinear economies using the theory of the core. We concentrate on the core with respect to equilibrium blocking, a core notion in which information is transmitted endogenously within coalitions, as blocking can be understood as an equilibrium of a communication mechanism used by players in coalitions. We consider independent, ex-post and signal-based replicas of the basic economy. For each, we offer an array of negative and positive convergence results as a function of the complexity of the mechanisms used by coalitions. We identify conditions under which asymmetric information remains as an externality and non-market outcomes stay in the core, as well as those for the core to converge to the set of incentive compatible ex-post Walrasian allocations. Further, all the results are robust to the relaxation of the incentive constraints, and hence suggest a process through which information may get incorporated into a fully revealing equilibrium price function.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2009-12

Classification
Wirtschaft
Cooperative Games
Noncooperative Games
Exchange and Production Economies
Asymmetric and Private Information; Mechanism Design
Subject
Core w.r.t. Equilibrium Blocking
Core Convergence
Independent Replicas
Ex-Post Replicas
Signal-Based Replicas
Information Transmission
Communication Mechanisms
Mediation
Rational Expectations Equilibrium

Event
Geistige Schöpfung
(who)
Kamishiro, Yusuke
Serrano, Roberto
Event
Veröffentlichung
(who)
Brown University, Department of Economics
(where)
Providence, RI
(when)
2009

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kamishiro, Yusuke
  • Serrano, Roberto
  • Brown University, Department of Economics

Time of origin

  • 2009

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