The Core of an Economy with Transaction Costs

S-Tier
Journal: Review of Economic Studies
Year: 1988
Volume: 55
Issue: 3
Pages: 447-458

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

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

Abstract

This paper defines a new concept of the core for an economy with transaction costs, and uses this concept to prove a limit theorem for sequences of replica economies. In this way it provides a rationale for a definition of equilibrium in which agents face a sequence of budget constraints. Since economies with incomplete markets are special cases of economies with transaction costs, the limit theorem also provides a rationale for Radner's equilibrium of plans, prices, and price expectations.

Technical Details

RePEc Handle
repec:oup:restud:v:55:y:1988:i:3:p:447-458.
Journal Field
General
Author Count
1
Added to Database
2026-01-29