SFB 303 Discussion Paper No. A - 124

Author: Haller, Hans
Title: Corporate Production under Uncertainty
Abstract: A two-period model of an economy with production and with uncertain future outputs and resources is investigated. Intertemporal trade is only possible via the stock market. Spanning equilibrium allocations lie always in the "smallest core" of each replica of the economy. If a feasible allocation is not a price-taking equilibrium allocation and satisfies an interiority and a liquidity condition, then in some replica of the economy the replicated allocation does not belong to the "largest core".
Keywords: Corporate production, uncertainty, core theory, incomplete markets
JEL-Classification-Number:
Creation-Date: July 1987
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