Pareto improving price regulation when the asset market is incomplete

B-Tier
Journal: Economic Theory
Year: 2005
Volume: 25
Issue: 1
Pages: 135-154

Authors (2)

P. Herings (Universiteit van Tilburg) Herakles Polemarchakis (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Incomplete asset markets cause competitive equilibria to be constrained suboptimal and provides scope for Pareto improving interventions. In this paper, we examine how intervention in prices in asset or spot commodity markets serves this purpose. We show that, if fix-price equilibria behave sufficiently regularly near Walrasian equilibria, Pareto improving price regulation is generically possible. An advantage of price regulation, contrasted with interventions in individuals’ asset portfolios, is that it operates anonymously, on market variables. Copyright Springer-Verlag Berlin/Heidelberg 2005

Technical Details

RePEc Handle
repec:spr:joecth:v:25:y:2005:i:1:p:135-154
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25