Research Output per year
Incomplete asset markets cause competitive equilibria to be constrained suboptimal and provides scope for pareto improving interventions. In this paper, we examine how intervention in prices in asset or spot commodity markets serves this purpose. We show that, if fix-price equilibria behave sufficiently regularly near walrasian equilibria, pareto improving price regulation is generically possible. An advantage of price regulation, contrasted with interventions in individuals’ asset portfolios, is that it operates anonymously, on market variables.
Herings, P. J. J. & Polemarchakis, H. M., 1 Jan 2003, Maastricht: Maastricht University School of Business and Economics, 22 p. (METEOR Research Memorandum; No. 035).
Research output: Working paper › Professional
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