On existence in equilibrium models with endogenous default

B-Tier
Journal: Journal of Mathematical Economics
Year: 2013
Volume: 49
Issue: 5
Pages: 418-421

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

The equilibrium concept defined by Dubey et al. (DGS, 1990, 2000, 2005) generates equilibria such that asset buyers could raise expected returns by paying more for the assets that they purchase. A simple example shows that, in fact, all equilibria may be return-dominated in that sense. Universal existence in the DGS model thus depends critically on the assumption that lenders are unable to exploit an obvious profit opportunity.

Technical Details

RePEc Handle
repec:eee:mateco:v:49:y:2013:i:5:p:418-421
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29