A Caltech Library Service

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 (Unpublished)

[img] PDF (sswp 365 - Dec. 1980) - Submitted Version
See Usage Policy.


Use this Persistent URL to link to this item:


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
Funding AgencyGrant Number
Series Name:Social Science Working Paper
Issue or Number:365
Record Number:CaltechAUTHORS:20171006-141542433
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:82183
Deposited By: Jacquelyn Bussone
Deposited On:09 Oct 2017 22:14
Last Modified:03 Oct 2019 18:51

Repository Staff Only: item control page