Showing papers in "Journal of Mathematical Economics in 1987"

TL;DR: In this article, the Ellsberg paradox was used to reject one of Savage's main axioms -the Sure Thing Principle -and develop a more general theory, in which the probability measure need not be additive.

TL;DR: In this paper, the authors give a characterization of rationalizability of decision rules in multiple dimensions, which is a generalization of the monotonicity condition of Spence-Mirrlees.

TL;DR: In this article, the authors propose a multi-period game where the flow of information into and out of prices is explicitly modeled, and show that the game Nash equilibria (NE) are consistent with the weak efficient markets hypothesis that tracking past prices is not profitable.

TL;DR: In this paper, it was shown that the policy function obtained by optimizing a discounted infinite sum of stationary return functions is Lipschitz continuous when the instantaneous function is strongly concave.

TL;DR: A Bayesian definition of common knowledge is provided, that is, a definition in terms of beliefs (probability measures) and an equivalence between this definition and that of the σ-fields representing 1 and 2's information is obtained.

TL;DR: In this paper, necessary and sufficient conditions are given for the existence of two continuous real valued functions u and v on a connected topological space X endowed with a preference relation ≺ (i.e., an asymmetric binary relation) such that y is preferred to x if and only if v(y)>u(x).

TL;DR: In this article, the problem of existence of optimal contracts in the principal-agent model was studied, and several examples of contract sets containing optimal contracts were given. But the problem was not addressed in this paper.

TL;DR: In this article, it was shown that a continuous preference relation on a path connected space X has a continuous utility representation if and only if it is countably bounded, i.e., there is some countable subset F of X such that for all x in X there exist y and z in F with y ≽ x ≽ z.

TL;DR: In this paper, the authors present an extension of the results on the existence of Walrasian equilibrium to the infinite dimensional setting, which depends on two crucial assumptions: the compactness of the collection of feasible allocations and the nonemptiness of the interior of the production set.

TL;DR: In this paper, necessary and sufficient conditions are presented for the existence of a continuous representation of the form, 〈u, δ〉; that is, for x,y∈X, x≻y if and only if u(x)>u(y)+δ where u:X→R is continuous and δ is a strictly positive real number.

TL;DR: In this article, the probability distribution of equilibrium outcomes is assumed to be a continuous but unknown function of agents' forecasts, and the main result is that with probability one the forecasts converge to the set of fixed points of the unknown mapping.

TL;DR: In this article, the authors analyzed how public debt restores Pareto efficiency in overlapping-generations economies and showed that efficiency can always be restored by a once-and-for-all augmentation of initial wealth (the introduction of debt) partially financed by a series of small taxes.

TL;DR: To understand the convergence properties of behavior based on such random variables, the function mapping any random variable to the information it generates is examined and relationships between convergence inribution of perturbed random variables and convergence in distribution of conditional expectations are studied.

TL;DR: In this article, it was shown that a collection of continuous, non-negative, concave functions on R n+ can all be realized as parallel sections of a single continuous concave function ψ on R m+ for some m≧n.

TL;DR: In this paper, it is shown that if a consumer's preference ordering is strictly convex and is representable by means of a concave, twice continuously differentiable utility function, then the partial derivative of a demanded commodity with respect to its price is bounded from above in a neighborhood of a price vector at which the demand fails to be differentiable.

TL;DR: In this paper, the authors consider effectivity functions with compact sets of players and issues and prove that an EF is stable on continuous profiles if and only if it is acyclic.

TL;DR: In this article, the authors analyzed the asymptotic properties of rolling plans in a multi-sector growth model with time-independent preferences and technology, and showed that, if plans are constantly revised with a fixed but sufficiently long planning horizon, the resulting growth path converges to a neighborhood of the turnpike.

TL;DR: In this paper, the authors characterize neutral social functions that are fully implementable under either the Nash equilibrium concept or the strong Nash equilibria concept and show that a neutral social function must be monotonic, simple and dictatorial.

TL;DR: In this article, the competitive gap is bounded by the size of the atoms in the economy, and the economy is represented by a Boolean algebra of coalitions, and coalitions rather than individual agents are taken as a primitive concept.