Econometrica Vol. 69 No. 6 2001
On the Failure of Core Convergence in Economies with Asymmetric Information
Abstract
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 convergence is a basic consequence of asymmetric information and extends to any reasonable notion of either (interim) core or price equilibrium.
- DOI
- 10.1111/1468-0262.00263
- Volume
- 69
- Issue
- 6
- Pages
- 1685-1696
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref