Strict fairness of equilibria in asymmetric information economies and mixed markets

B-Tier
Journal: Economic Theory
Year: 2020
Volume: 69
Issue: 1
Pages: 107-124

Authors (2)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

Abstract We investigate the fairness property of equal-division competitive market equilibria (CME) in asymmetric information economies with a space of agents that may contain non-negligible (large) traders. We first propose an extension to our framework of the notion of strict fairness due to Zhou (J Econ Theory 57:158–175, 1992). We prove that once agents are asymmetrically informed, any equal-division CME allocation is strictly fair, but a strictly fair allocation might not be supported by an equilibrium price. Then, we investigate the role of large traders and we provide two sufficient conditions under which, in the case of complete information economies, a redistribution of resources is strictly fair if and only if it results from a competitive mechanism.

Technical Details

RePEc Handle
repec:spr:joecth:v:69:y:2020:i:1:d:10.1007_s00199-018-1158-0
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29