Self-fulfilling mechanisms and rational expectations in large markets. (Q1401108): Difference between revisions

The authors show that in a market game, assuming that the set of commodities form a net, there is an equivalence between the set of allocations generated by self-fulfilling mechanisms and the set of rational expectation equilibrium allocations, without assuming that a specific commodity be used as money. This extends an equivalence theorem proved in the paper [\textit{F. Forges} and \textit{E. Milleni}, J. Econ. Theory 75, 388--406 (1997; Zbl 0892.90192)]. The authors also provide an example to show that the equivalence breaks down if the assumption that the set of commodities is a net does not hold.