The relation between sunspot effects and multiplicity in incomplete markets models with numeraire assets

B-Tier
Journal: Journal of Mathematical Economics
Year: 2014
Volume: 50
Issue: C
Pages: 119-127

Authors (1)

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

This paper considers the necessity and sufficiency of multiple certainty equilibria for sunspot effects, and shows that neither implication is valid. This claim is made for models with incomplete markets and numeraire assets. First, I prove that a multiplicity of certainty equilibria is neither necessary nor sufficient for sunspot effects by way of two counter-examples. Second, I verify over an entire subset of economies that equilibrium with sunspot effects can never be characterized as a randomization over multiple certainty equilibria.

Technical Details

RePEc Handle
repec:eee:mateco:v:50:y:2014:i:c:p:119-127
Journal Field
Theory
Author Count
1
Added to Database
2026-02-02