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| Title: | | Equilibrium blocking in large quasilinear economies  |
| Authors: | | Kamishiro, Yusuke Serrano, Roberto |
| Issue Date: | | 2009 |
| Series/Report no.: | | Working Paper, Brown University, Department of Economics 2009-12 |
| Abstract: | | We study information transmission in large interim quasilinear economies using the theory of the core. We concentrate on the core with respect to equilibrium blocking, a core notion in which information is transmitted endogenously within coalitions, as blocking can be understood as an equilibrium of a communication mechanism used by players in coalitions. We consider independent, ex-post and signal-based replicas of the basic economy. For each, we offer an array of negative and positive convergence results as a function of the complexity of the mechanisms used by coalitions. We identify conditions under which asymmetric information remains as an externality and non-market outcomes stay in the core, as well as those for the core to converge to the set of incentive compatible ex-post Walrasian allocations. Further, all the results are robust to the relaxation of the incentive constraints, and hence suggest a process through which information may get incorporated into a fully revealing equilibrium price function. |
| Subjects: | | Core w.r.t. Equilibrium Blocking Core Convergence Independent Replicas Ex-Post Replicas Signal-Based Replicas Information Transmission Communication Mechanisms Mediation Rational Expectations Equilibrium |
| JEL: | | C71 C72 D51 D82 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Papers, Department of Economics, Brown University
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