TY  - GEN
AB  - Knightian uncertainty leads naturally to nonlinear expectations.
We introduce a corresponding equilibrium concept with sublinear
prices and establish their existence. In general, such equilibria lead
to Pareto inefficiency and coincide with Arrow-Debreu equilibria only
if the values of net trades are ambiguity-free in the mean. Without
aggregate uncertainty, inefficiencies arise generically. We introduce
a constrained efficiency concept, uncertainty-neutral efficiency and
show that Knight-Walras equilibrium allocations are efficient in this
constrained sense. Arrow-Debreu equilibria turn out to be non-robust
with respect to the introduction of Knightian uncertainty.
DA  - 2016
KW  - Knightian Uncertainty
KW  - Ambiguity
KW  - General Equilibrium
LA  - eng
PY  - 2016
SN  - 0931-6558
SP  - 26-
TI  - Knight-Walras equilibria
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29035383
Y2  - 2024-11-22T08:00:04
ER  -