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On the Failure of Core Convergence in Economies with Asymmetric Information
Author(s) -
Serrano Roberto,
Vohra Rajiv,
Volij Oscar
Publication year - 2001
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.1111/1468-0262.00263
Subject(s) - dept , hebrew , citation , library science , history , economics , classics , computer science , chemistry , stereochemistry
In interim economies with asymmetric information, we show that the coarse core of Wilson (1978) does not converge to price equilibrium allocations as the economy is replicated.This failure of core conver- gence is a basic consequence of asymmetric information and extends to any reasonable notion of either (interim) core or price equilibrium.