Showing papers in "Journal of Economic Theory in 1984"

TL;DR: In this paper, it is shown that if the goods are substitutes (not) to share information is a dominant strategy for each firm in Bertrand (Cournot) competition, then the market outcome is always optimal.

TL;DR: In this paper, a method for constructing all Pareto-optimal allocations for a dynamic economy with many heterogeneous consumers, under certainty, in which both the technology and consumer preferences are recursive but preferences need not be additively separable over time.

TL;DR: In this paper, a single principal contracts with two agents who possess perfect private information about their own productivity, and it is shown that such private information may be of no value to the agents.

TL;DR: In this paper, the authors derived Ross's mutual fund separation theory and a new, equilibrium version of Ross's arbitrage pricing theory as special cases of a general theory and revealed that the two theories are identical in their predictions of asset prices and portfolio returns.

TL;DR: In this paper, the authors present a model where more than one technological innovation is anticipated and expectations about the likelihood of such innovations are revised as time passes since the last innovation, and the analysis shows that the firm will adopt the current best practice if its technological lag exceeds a certain threshold, and moreover, it may become profitable to purchase a technology that has been available even though it was not profitable to do so in the past.

TL;DR: In this article, an optimal auditing scheme for the tax authorities who face a given tax and penalty functions and a given budget constraint is proposed, where individuals can be classified into one of three groups and each group is characterized by two parameters: (i) the probability of being audited in that group, and (ii) into which group will an individual move if: (ii.a) he reported truthfully, (iii) he cheated.

TL;DR: In this paper, it was shown that the combination of Gardenfors' principle of extension with a very mild monotonicity requirement leads to an impossibility result, and the problem of extending an order on a set to the power set was shown to be NP-hard.

TL;DR: In this paper, the authors apply the technique of generalized expected utility analysis and the theory of support functions to exactly model and hence determine the nature of preferences over temporal risky prospects, and show that most economically important instances of risk taking (insurance, real investment, agriculture, career training) involve delayed as opposed to immediately resolved risk.

TL;DR: The authors showed that Nash equilibrium misrepresentation of preferences nevertheless results in a stable outcome in terms of the true preferences when the aggregation procedure yields the optimal stable outcome when the stated preferences for one side of the market.

TL;DR: The bargaining game is proposed where the agents bid fractions of dictatorship that are used by all non-winners of the auction to threaten acceptance of the winner's proposal as mentioned in this paper, and the procedure non-cooperatively implements the Kalai-Smorodinsky bargaining solution.

TL;DR: It is shown that an SPB allocation always exists, that the set of SPB allocations coincides with the intersection of the kernel and the core, and that there is a rebargaining process which converges to anSPB allocation if it begins at a “distinguished point” in the core.

TL;DR: It is argued here that, in many situations, a more appropriate tool for capturing the inherent imprecisions of human value judgements may be fuzzy orderings.

TL;DR: In this paper, the existence of equilibria in generalized qualitative games with non-ordered preferences was shown. But the authors did not consider the case of non-order preferences.

TL;DR: In this article, a nonzero sum, infinite horizon differential game and conditions under which the game converges to a particular stationary point, regardless of the initial conditions, are shown.

TL;DR: In this paper, the existence of a local equilibrium for a preference field which satisfies, not convexity, but the weaker local acyclicity is shown, and the theorem is then applied to a voting game, σ, without veto players.

TL;DR: In this paper, it was shown that given an ordering over a set, it is impossible to induce an order over the power set satisfying certain plausible axioms, and that the dividing line between impossibility and possibility here is rather thin.

TL;DR: In this article, the allocational roles of futures markets and commodity options in multi-good and multi-period economies are examined, and it is shown that both hedging and reverse hedging behavior are possible.

TL;DR: In this article, the authors study a dynamic market process in which traders condition their beliefs about payoff-relevant parameters on past endogenously generated market data and current exogenous data, and show that a market process is informative if the beliefs of traders who receive only end-ogenously-generated market data converge almost surely to the true parameter value.

TL;DR: In this paper, a class of measures of distance between two income distributions is presented, which are based on distribution functions and evaluate the degree of inequality of income between two populations, and they are derived by an axiomatic approach.

TL;DR: In this article, it was shown that the folk theorem holds in the limit if demand increases at the same rate as the number of firms and the Cournot price sequence is bounded strictly above by the supremum of marginal cost for large N.

TL;DR: The SSB utility theory as discussed by the authors represents preferences between probability measures by the positive part of a skew-symmetric bilinear functional φ defined on pairs of measures, and the maximizing behavior of φ on subspaces of measures is investigated.

TL;DR: The problem of extending an ordering on a finite set of alternatives to its power set is considered in this paper, where it is shown that two fairly mild axioms imply the restrictive condition that every set is equivalent to the set consisting only of its least and greatest elements.

TL;DR: The equivalence of cores and competitive equilibrium sets in the very general framework of Boolean rings and algebras is proved in this article, and the results include most previous results as special cases.

TL;DR: In this article, the authors considered the problem of inducing an ordering over the set of all non-empty subsets of a finite set X of alternatives, given an ordering R over X.

TL;DR: The authors showed that a modest restriction of their monotonicity axiom is compatible for extension with a generalization of their other axiom provided that the linear order on the basic set is a well ordering.

TL;DR: In this paper, the authors deal with Lipietz's presentation of a solution which had been proposed to the transformation problem, which is based on a confusion between the conceptual and factual determination of the value of labor power.

TL;DR: In this article, the stationary Pareto optimality of asset equilibria in stochastic settings with age diversity among the agents is suggested, defined in terms of expected lifetime utility of representative agents conditioned on their first period state.

TL;DR: In this paper, the authors give sufficient conditions for the existence of an equilibrium with price rigidities and quantity rationing where demand is never rationed, net trades of an a priori chosen numeraire are not rationed and supply is rationed only when relative prices are downward rigid.

TL;DR: In this paper, the optimal sequential strategy with no recall uses a reservation sum for any subset of items, however, when the observed prices total more than the corresponding reservation sum, not all goods will be bought and search continues for items not purchased.