Irrelevance of private information in two-period economies with more goods than states of nature

• Type: Article in International Scientific Journal
• Date: 2014

Authors

João Correia-da-Silva (Author) FEP; Carlos Hervés-Beloso (Author) FEP

Journal

Title: Economic Theory

Vol. 55 No. 2

Pages: 439-455

ISSN: 0938-2259

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 9 Citations

ISI Web of Science

Scopus - 8 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

CORDIS: Social sciences > Economics

Other information

Authenticus ID: P-009-5GT

DOI: 10.1007/s00199-013-0755-1

Abstract (EN): We introduce a two-period economy with asymmetric information about the state of nature that occurs in the second period. Each agent is endowed with an information structure that describes her (incomplete) ability to prove whether or not a state has occurred. We show that if the number of states of nature is not greater than the number of goods, then, generically, the equilibria of the associated full information economy are also equilibria of the asymmetric information economy. The information structures of the agents are, in that sense, irrelevant.

Language: English

Type (Professor's evaluation): Scientific