1,720,976 research outputs found
An Entropy-Based Information Sharing Rule for Asymmetric Information Economies
No full textThe possibility to compare information partitions is investigated for economies with asymmetric information. First, we focus on two potentially suitable instruments, the Boylan distance and the entropy, and show that the former does not fit the purpose. Then, we use the entropy associated with the information partition of each trader to construct a partially endogenous rule which regulates the information sharing process among traders. Finally, we apply this rule to some examples and analyze its impact on two cooperative solutions: the core and the coalition structure value
Housing market models with consumption externalities
No full textWe analyze housing market models à la Shapley and Scarf with externalities in consumption; that is, agents care about others and their preferences are defined over allocations rather than over single indivisible goods. After collecting some negative results about the existence of several cooperative solutions, we focus on stable allocations and search for special domains of preferences that can guarantee that they both exist and form a stable set à la von Neumann and Morgenstern. JEL Classification: C70, C78, D51, D62, D64
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