Bayesian general equilibrium

2 General Equilibrium Theory

Here we briefly review the general equilibrium theory, which is pretty traditional: preference and the concept of ordinal utility, demand and comparative statics, the definition of Arrow–Debreu equilibrium, Pareto efficiency and welfare theorems, welfare comparison and compensation principle, and incomplete asset markets. As they are standard, they are presented without proofs. For a comprehens...

Applying General Equilibrium

Affine General Equilibrium Models

No-arbitrage models are extremely flexible modelling tools, but often lack economic motivation. This paper describes an equilibrium consumption based CAPM framework based on Epstein-Zin preferences, which produces analytic pricing formulas for stocks and bonds under the assumption that macro growth rates follow affine processes. This allows the construction of equilibrium pricing formulas while...

The existence of Bayesian fuzzy equilibrium problems for a new general Bayesian abstract fuzzy economy model with differential private information

In this work, we introduced a new Bayesian abstract fuzzy economy model with differential private information and the Baysian fuzzy equilibrium problem, and we also prove the existence of the Baysian fuzzy equilibrium problem for this new model. Our main results extended and improved the recent results announced by many authors from the literature. The new concept of idea that the uncertainties...

Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium

In (Bonanno, 2013), a solution concept for extensive-form games, called perfect Bayesian equilibrium (PBE), was introduced and shown to be a strict refinement of subgame-perfect equilibrium; it was also shown that, in turn, sequential equilibrium (SE) is a strict refinement of PBE. In (Bonanno, 2016), the notion of PBE was used to provide a characterization of SE in terms of a strengthening of ...