Incomplete-Information Models of Large Economies with Anonymity: Existence and Uniqueness of Common Priors
17 Pages Posted: 20 May 2011
Date Written: May 2011
Abstract
The paper provides a specification of belief systems for models of large economies with anonymity in which aggregate states depend only on cross-section distributions of types. For belief systems satisfying certain conditions of mutual absolute continuity, the paper gives a necessary and sufficient condition for the existence of a common prior. Under the given conditions, the common prior is unique.
Keywords: Large Economy, Belief systems, consistency, common prior
JEL Classification: D82, C70, D83
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Marco Bassetto and Christopher Phelan
-
The Pareto-Frontier in a Simple Mirrleesian Model of Income Taxation
By Felix J. Bierbrauer and Pierre Boyer
-
Optimal Democratic Mechanisms for Taxation and Public Good Provision
By Felix J. Bierbrauer and Marco Sahm
-
Optimal Income Taxation, Public Goods Provision and Robust Mechanism Design
-
Optimal Income Taxation and Public-Goods Provision with Preference and Productivity Shocks
-
Optimal Income Taxation and Public Goods Provision in a Large Economy with Aggregate Uncertainty
-
A Unified Approach to the Revelation of Public Goods Preferences and to Optimal Income Taxation