We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by thinking of assets as pools. The equilibrating variables include expected delivery rates, along with the usual prices of assets and commodities. By reinterpreting the variables, our model encompasses a broad range of adverse selection and signalling phenomena in a perfectly competitive, general equilibrium framework.
MLA
Dubey, Pradeep, et al. “Default and Punishment in General Equilibrium.” Econometrica, vol. 73, .no 1, Econometric Society, 2005, pp. 1-37, https://doi.org/10.1111/j.1468-0262.2005.00563.x
Chicago
Dubey, Pradeep, John Geanakoplos, and Martin Shubik. “Default and Punishment in General Equilibrium.” Econometrica, 73, .no 1, (Econometric Society: 2005), 1-37. https://doi.org/10.1111/j.1468-0262.2005.00563.x
APA
Dubey, P., Geanakoplos, J., & Shubik, M. (2005). Default and Punishment in General Equilibrium. Econometrica, 73(1), 1-37. https://doi.org/10.1111/j.1468-0262.2005.00563.x
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