Ex Ante Optimality and Spot Market Economies

Burness, H. Stuart and Cummings, Ronald and Quirk, James P. (1980) Ex Ante Optimality and Spot Market Economies. Social Science Working Paper, 365. California Institute of Technology , Pasadena, CA. (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20171006-141542433

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Abstract

Arrow's result linking ex ante Pareto optimality for a pure trade world to competitive equilibrium positions under a complete set of contingent claim markets is summarized, as is his reinterpretation of ex ante optimality for the case of an economy with active spot markets. Possible difficulties arising from this reinterpretation are noted. The final section of the paper examines conditions under which an economy with active spot markets will achieve an ex ante optimum in the original sense of this term and summarizes the behavior of such an economy.

Item Type:

Report or Paper (Working Paper)

Additional Information:

This research was supported in part by the National Science Foundation under Grant No. DAR 7909933. We wish to thank Ted Groves, Walter Heller and Bob Forsythe for their comments.

Group:

Social Science Working Papers

Funders:

Funding Agency	Grant Number
NSF	DAR-7909933

Series Name:

Social Science Working Paper

Issue or Number:

365

Record Number:

CaltechAUTHORS:20171006-141542433

Persistent URL:

https://resolver.caltech.edu/CaltechAUTHORS:20171006-141542433

Usage Policy:

No commercial reproduction, distribution, display or performance rights in this work are provided.

ID Code:

82183

Collection:

CaltechAUTHORS

Deposited By:

Jacquelyn Bussone

Deposited On:

09 Oct 2017 22:14

Last Modified:

03 Oct 2019 18:51

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