Self-enforcement, heterogeneous agents, and long-run survival
2021
Abstract We consider an infinite horizon game in which players have heterogeneous beliefs about future endowments process and trade with each other. Focusing on Pareto-efficient subgame-perfect equilibria, we find that unlike dynamic general equilibrium models, every player’s consumption is bounded away from zero. That is, every player survives in a Pareto-efficient subgame-perfect equilibrium.
Keywords:
- Correction
- Source
- Cite
- Save
- Machine Reading By IdeaReader
10
References
0
Citations
NaN
KQI