A note on the "size" of determinacy and indeterminacy
(1998) Economic Theory — Vol. 12, p. 213-223 (1998)
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- Authors
Davila Muro, Julio 
- Abstract
- It is shown in this note that in an incomplete markets economy with uncountably many states of the world there may be uncountably many isolated equilibria as well as uncountably many non-isolated equilibria. Moreover, both subsets can be simultaneously of second category. Therefore, none of the subsets can be considered negligible with respect to the other, neither from a cardinality point of view nor from a topological one. Unfortunately, this fact prevents from claiming that these economies may have ``typically'' determinate equilibria ± even though uncountably many of them ± as would have been desirable for comparative statics exercises.
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Citations
Davila Muro, J. (1998). A note on the “size” of determinacy and indeterminacy. Economic Theory, 12, 213-223. https://hdl.handle.net/2078.5/56810 (Original work published 1998)