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General equilibrium, coordination and multiplicity on spot markets

Author

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  • Roger Guesnerie

    (Collège de France - Chaire Théorie économique et organisation sociale - CdF (institution) - Collège de France, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract
This is a slightly revised English version of a paper published in the "Revue d'Economie Politique" 112 (5) sept-oct 2002. The text reviews recent work on expectational coordination in general equilibrium models of the Walrasian tradition. It evokes briefly the multiplicity questions associated with infinite horizon models and the issues associated with "eductive learning". It examines in a more systematic way the coordination difficulties that would arise in finite horizon models with spot multiplicity and discusses the relationship between coordination and incompleteness.

Suggested Citation

  • Roger Guesnerie, 2006. "General equilibrium, coordination and multiplicity on spot markets," Working Papers halshs-00590540, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00590540
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00590540
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    References listed on IDEAS

    as
    1. Piero Gottardi & Atsushi Kajii, "undated". ""Generic Existence of Sunspot Equilibria: The Case of real Assets''," CARESS Working Papres 95-12, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
    2. Kehoe, Timothy J & Levine, David K, 1985. "Comparative Statics and Perfect Foresight in Infinite Horizon Economies," Econometrica, Econometric Society, vol. 53(2), pages 433-453, March.
    3. Roger Guesnerie, 2001. "Short-Run Expectational Coordination: Fixed Versus Flexible Wages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 1115-1147.
    4. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66(6), pages 467-467.
    5. R. Guesnerie, 2002. "Anchoring Economic Predictions in Common Knowledge," Econometrica, Econometric Society, vol. 70(2), pages 439-480, March.
    6. Roger Guesnerie, 2005. "Assessing Rational Expectations 2: "Eductive" Stability in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262072580, April.
    7. Desgranges, Gabriel & Negroni, Giorgio, 2003. "Expectations Coordination On A Sunspot Equilibrium: An Eductive Approach," Macroeconomic Dynamics, Cambridge University Press, vol. 7(1), pages 7-41, February.
    8. Woodford, Michael, 1990. "Learning to Believe in Sunspots," Econometrica, Econometric Society, vol. 58(2), pages 277-307, March.
    9. Cass, David & Shell, Karl, 1983. "Do Sunspots Matter?," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 193-227, April.
    10. Gauthier, Stéphane, 2003. "Dynamic Equivalence Principle In Linear Rational Expectations Models," Macroeconomic Dynamics, Cambridge University Press, vol. 7(1), pages 63-88, February.
    11. Milgrom, Paul & Roberts, John, 1990. "Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities," Econometrica, Econometric Society, vol. 58(6), pages 1255-1277, November.
    12. Roger Guesnerie, 2001. "Assessing Rational Expectations: Sunspot Multiplicity and Economic Fluctuations," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262072076, April.
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    Cited by:

    1. Fratini, Saverio M. & Levrero, Enrico Sergio & Ravagnani, Fabio, 2016. "Price expectations in neo-Walrasian equilibrium models: an overview," MPRA Paper 69515, University Library of Munich, Germany.

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