Symmetry breakings in Malinvaud's model with individual risks

Hervé Crès, Isabelle Rossi

Research output: Contribution to journalArticle

Abstract

This paper investigates the existence of asymmetric equilibria in Malinvaud's [Malinvaud, E., 1973. Markets for an exchange economy with individual risks. Econometrica 41, 383-410] model of a pure exchange economy with individual risks. Agents face identical individual risks. Their utility functions only depend on their individual state; the only difference with Malinvaud's original formulation is that there exists one good for which some aggregate component of the risk is introduced through endowments. Agents are described by totally symmetric characteristics but yet can come out of the exchange process with asymmetric allocations (there might be unequal treatment of equal agents): the generic existence of asymmetric equilibria is shown. In addition, robust examples of both existence and non-existence of asymmetric equilibria in Malinvaud's original formulation (with "pure" individual risks) are given.

Original languageEnglish (US)
Pages (from-to)239-269
Number of pages31
JournalJournal of Mathematical Economics
Volume33
Issue number2
DOIs
StatePublished - Jan 1 2000

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Symmetry Breaking
Exchange Economy
Model
Formulation
Utility Function
Unequal
Nonexistence
Individual risk
Symmetry
Asymmetric equilibria
Exchange economy

Keywords

  • Asymmetric equilibria
  • General equilibrium
  • Individual risks

ASJC Scopus subject areas

  • Economics and Econometrics
  • Applied Mathematics

Cite this

Symmetry breakings in Malinvaud's model with individual risks. / Crès, Hervé; Rossi, Isabelle.

In: Journal of Mathematical Economics, Vol. 33, No. 2, 01.01.2000, p. 239-269.

Research output: Contribution to journalArticle

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