Sequentially Complete Markets Remain Incomplete

J. Drèze, P.J.J. Herings*

*Corresponding author for this work

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We show by means of an example that the result of arrow [arrow, k.j. (1953), le rôle des valeurs boursières pour la répartition la meilleure des risques, econométrie, 41–47, cnrs, paris; translated as the role of securities in the optimal allocation of risk bearing, review of economic studies, 31, 91–96] is problematic when there exist multiple equilibrium continuations to the initial-period component of an intertemporal equilibrium.
Original languageEnglish
Pages (from-to)445-447
Number of pages2
JournalEconomics Letters
Publication statusPublished - 1 Jan 2008

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