The complete removal of individual uncertainty: Multiple optimal choices and random exchange economies (Q1817961)

The paper is devoted to some measure-theoretic methods applicable for the large economic systems with individual-specific randomness and multiple optimal actions. For a suitably formulated continuum of correspondences a version of the law of large numbers is characterized, and the removability of the widespread correlation due to multiple optimal actions is shown. Also the existence of solutions preserving microscopic independence structure in terms of competitive equilibria is investigated. The results are illustrated in the general equilibrium model where the possibility of the complete removal of correlations is investigated as well.