Pesce, Marialaura; Yannelis, Nicholas C. - In: Journal of Mathematical Economics 46 (2010) 5, pp. 762-774
Under the Bayesian-Walrasian Equilibrium (BWE) (see Balder and Yannelis, 2009), agents form price estimates based on their own private information, and in terms of those prices they can formulate estimated budget sets. Then, based on his/her own private information, each agent maximizes interim...