IDEAS home Printed from https://ideas.repec.org/h/pal/intecp/978-1-349-01989-2_7.html
   My bibliography  Save this book chapter

Stochastic Preferences and General Equilibrium Theory

In: Allocation under Uncertainty: Equilibrium and Optimality

Author

Listed:
  • Freddy Delbaen

    (University of Brussels)

Abstract

This paper is an attempt to introduce stochastic events in consumer behaviour and the related equilibrium theory. The idea of stochastic behaviour is not very new as may be seen from the literature. Nevertheless, it is not introduced in the current theory of general equilibrium. Indeed, one always supposes that people behave rationally (i.e. their preferences can be represented by a continuous utility function). In psychology such a model is not accepted and one tries to replace the ‘homo deterministicus’ by the ‘homo stochas-ticus’ (this is done keeping in mind that they are both ‘homo sapiens’). The introduction of stochastic individuals in general equilibrium theory is an idea of W. Hildenbrand [9]. This paper generalises his results, since we use only asymptotic independence instead of independence. See also [3] for another application to general equilibrium analysis.

Suggested Citation

  • Freddy Delbaen, 1974. "Stochastic Preferences and General Equilibrium Theory," International Economic Association Series, in: Jacques H. Drèze (ed.), Allocation under Uncertainty: Equilibrium and Optimality, chapter 7, pages 98-109, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-01989-2_7
    DOI: 10.1007/978-1-349-01989-2_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:intecp:978-1-349-01989-2_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.