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2004 | OriginalPaper | Chapter

On extensive form implementation of contracts in differential information economies

Authors : Dionysius Glycopantis, Allan Muir, Nicholas C. Yannelis

Published in: Assets, Beliefs, and Equilibria in Economic Dynamics

Publisher: Springer Berlin Heidelberg

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In the context of differential information economies, with and without free disposal, we consider the concepts of Radner equilibrium, rational expectations equilibrium, private core, weak fine core and weak fine value. We look into the possible implementation of these concepts as perfect Bayesian or sequential equilibria of noncooperative dynamic formulations. We construct relevant game trees which indicate the sequence of decisions and the information sets, and explain the rules for calculating ex ante expected payoffs. The possibility of implementing an allocation is related to whether or not it is incentive compatible. Implementation through an exogenous third party or an endogenous intermediary is also considered.

Metadata
Title
On extensive form implementation of contracts in differential information economies
Authors
Dionysius Glycopantis
Allan Muir
Nicholas C. Yannelis
Copyright Year
2004
Publisher
Springer Berlin Heidelberg
DOI
https://doi.org/10.1007/978-3-662-05858-9_16

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