Interim efficiency with MEU-preferences

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 5
Pages: 1987-2017

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Recently Kajii and Ui (2009) [17] proposed to characterize interim efficient allocations in an exchange economy under asymmetric information when uncertainty is represented by multiple posteriors. When agents have Bewley's incomplete preferences, Kajii and Ui (2009) [17] proposed a necessary and sufficient condition on the set of posteriors. However, when agents have Gilboa-Schmeidler's MaxMin expected utility preferences, they only propose a sufficient condition. The objective of this paper is to complete Kajii and Ui's work by proposing a necessary and sufficient condition for interim efficiency for various models of ambiguity aversion and in particular MaxMin expected utility. Our proof is based on a direct application of some results proposed by Rigotti, Shannon and Stralecki (2008) [24].

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:5:p:1987-2017
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25