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Uncertain equilibria and incomplete preferences

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  • Chambers, Robert G.

Abstract

This paper studies the tendency for incomplete preference structures to be associated with equilibrium price indeterminacies in an Arrow–Debreu–McKenzie state-contingent setting. It is shown that the presence of a sufficiently smooth stochastic production technology is inconsistent with equilibrium price indeterminacies even if all individuals have incomplete preference structures. A particularly convenient characterization of Paretian equilibria in the presence of incomplete preferences, which allows Paretian equilibrium to be characterized using simple principles of convex optimization and (sub)differential analysis, is also developed.

Suggested Citation

  • Chambers, Robert G., 2014. "Uncertain equilibria and incomplete preferences," Journal of Mathematical Economics, Elsevier, vol. 55(C), pages 48-54.
    • Handle: RePEc:eee:mateco:v:55:y:2014:i:c:p:48-54
    DOI: 10.1016/j.jmateco.2014.09.009
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    References listed on IDEAS

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    1. Chambers, Robert G. & Quiggin, John, 2001. "Primal and Dual Approaches to the Analysis of Risk Aversion," Working Papers 197602, University of Maryland, Department of Agricultural and Resource Economics.
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    Cited by:

    1. Robert G. Chambers & Tigran Melkonyan & John Quiggin, 2022. "Incomplete preferences, willingness to pay, and willingness to accept," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(3), pages 727-761, October.

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