Information and securities: A note on Pareto dominance and the second best (Q581201)
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scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Information and securities: A note on Pareto dominance and the second best |
scientific article |
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Information and securities: A note on Pareto dominance and the second best (English)
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1987
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A unified analysis is provided of two related problems: the first concerns the welfare impact of changing the set of tradeable securities in an incomplete market economy. The second concerns the welfare implications of changing the common information structure faced by all agents. Both problems arise from a common second-best framework in which expanding the set of trading opportunities can lead to a Pareto worsening.
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Pareto dominance
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incomplete market economy
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second-best
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