Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288303 
Year of Publication: 
2020
Citation: 
[Journal:] Economic Theory [ISSN:] 1432-0479 [Volume:] 71 [Issue:] 1 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2020 [Pages:] 81-114
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
This paper studies a sole proprietorship economy with imperfect competition in a transferable utility setting. While consumers behave as price takers, producers issue real assets strategically to maximize their own utility. Even when complete markets are technologically feasible, equilibria with incomplete markets are robust, and they appear in large numbers: There is a continuum of equilibria with different asset spans that can be welfare-ranked. This real indeterminacy does not vanish as the number of producers goes to infinity. Therefore, the self-interest of producers restricts economic outcomes but does not determine them.
Subjects: 
Incomplete markets with production
Imperfect competition
Discontinuous games
Real indeterminacy
Endogenously incomplete markets
JEL: 
D43
D51
D52
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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