Radner equilibrium

Radner equilibrium

Radner equilibrium is an economic concept defined by economist Roy Radner in the context of general equilibrium. The concept is an extension of the Arrow-Debreu equilibrium to allow for the existence of spot markets.

At a "Radner equilibrium" trade between agents takes place through time and in contrast to the Arrow-Debreu equilibrium, economic agents face a sequence of budget sets, one at each date-state. Thus the model introduces "uncertainty" to explain the price of a commodity at time "t+n" as determined at time "t".

External links

* [http://cepa.newschool.edu/het/essays/sequence/radnerequil.htm Radner equilibrium]


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