Equilibria and incentives in private information economies

A-Tier
Journal: Journal of Economic Theory
Year: 2017
Volume: 169
Issue: C
Pages: 474-488

Authors (4)

Sun, Xiang (Wuhan University) Sun, Yeneng (not in RePEc) Wu, Lei (not in RePEc) Yannelis, Nicholas C. (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

This paper considers three solution concepts in a large private information economy, namely, Walrasian expectations equilibrium, private core, and insurance equilibrium. It shows that these three concepts coincide with each other when the agents are informationally negligible in such an economy. In contrast to the finite-agent setting, one can construct a large private information economy in which incentive compatibility fails completely in the sense that almost every agent in any Walrasian expectations equilibrium/private core/insurance equilibrium allocation has the incentive to misreport her type.

Technical Details

RePEc Handle
repec:eee:jetheo:v:169:y:2017:i:c:p:474-488
Journal Field
Theory
Author Count
4
Added to Database
2026-01-29