Abstract

http://ssrn.com/abstract=304923
 
 

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The Weak Sequential Core for Two-Period Economies


Arkadi Predtetchinski


Maastricht University - Department of Economics

P. Jean-Jacques Herings


Maastricht University

Andrés Perea y Monsuwé


Universidad Carlos III de Madrid - Department of Economics

March 2002

METEOR Research Memorandum Working Paper No. RM/02/011

Abstract:     
We adapt the core concept to deal with economies in which trade in assets takes place at period 1, uncertainty about asset payoffs is released at period 2, and agents trade in commodities afterwards. We define the weak sequential core as the set of allocations that are stable against coalitional deviations ex ante, and moreover cannot be improved upon by any coalition once the uncertainty is being released. We restrict ourselves to credible deviations, i.e. coalitional deviations at period 1 that cannot be counterblocked by some subcoalition at period 2. We study the relationship of the resulting core concept with other sequential core concepts, give sufficient conditions under which the weak sequential core is non-empty, but show that it is possible to give reasonable examples where it is empty.

Number of Pages in PDF File: 30

Keywords: Core, Assets

JEL Classification: C71, C73, D52

working papers series


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Date posted: March 28, 2002  

Suggested Citation

Predtetchinski, Arkadi and Herings, P. Jean-Jacques and Perea y Monsuwé, Andrés, The Weak Sequential Core for Two-Period Economies (March 2002). METEOR Research Memorandum Working Paper No. RM/02/011. Available at SSRN: http://ssrn.com/abstract=304923 or http://dx.doi.org/10.2139/ssrn.304923

Contact Information

Arkadi Predtetchinski
Maastricht University - Department of Economics ( email )
P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31-43-3883636 (Phone)
+31-43-3884878 (Fax)
P. Jean-Jacques Herings (Contact Author)
Maastricht University ( email )
Department of Economics
P.O. Box 616
6200 MD Maastricht
Netherlands
+31 43 3883636 (Phone)
+31 43 3884878 (Fax)
HOME PAGE: http://www.personeel.unimaas.nl/p.herings/herings.htm
Andrés Perea y Monsuwé
Universidad Carlos III de Madrid - Department of Economics ( email )
Calle Madrid 126
Getafe, 28903
Spain
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