Contracts for Uncertain Delivery

  1. Hervés Beloso, Carlos
  2. Silva, João Correia da
Working paper series ( RGEA )

Ano de publicación: 2005

Número: 2

Tipo: Documento de traballo


We propose the notion of objects of choice as uncertain consumption bundles, extending the formulation of Arrow (1953). Agents sign "contracts for uncertain delivery", which specify a list of alternative bundles, instead of a single one. This allows us to incorporate uncertainty and asymmetric information in the model of Arrow-Debreu. Relatively to the model of Radner (1968), efficiency of trade is increased and some "no trade" situations are avoided, while the classical results still hold: existence of core and competitive equilibrium, core convergence, welfare theorems, etc