We show that the fine core of an atomless exchange economy with differential information is a subset of the ex-post core of the economy. (This inclusion may be proper, and it does not hold for economies with a finite number of traders.) Consequently, every fine core allocation is a selection from the equilibrium corre- spondence of the associated family of full information economies. Moreover, when each trader knows his or her own utility function and his of her own endowment, every fine core allocation is a rational expectations equilibrium allocation. Journal of Economic Literature Classification Numbers: C72, D50.
Bibliographical noteFunding Information:
1We thank Oscar Volij, an associate editor and two referees for helpful comments. This work was done while Einy and Shitovitz visited the Department of Economics of the Univer-sidad Carlos III de Madrid. Einy acknowledges the financial support of the Universidad Carlos III de Madrid. Moreno acknowledges the support of the Spanish Ministry of Education, Grant PB97-0091. Shitovitz acknowledges the support of the Spanish Ministry of Education, Grant SAB98-0059.
- Differential information; fine core; ex-post core; rational expectations equilibrium
ASJC Scopus subject areas
- Economics and Econometrics