We show that extrinsic or non-fundamental uncertainty influences markets in a controlled environment. This work provides the first direct evidence of sunspot equilibria. These equilibria require a common understanding of the semantics of the sunspot variable, and they appear to be sensitive to...

We generalize the concept of Nash equilibrium to the concept of general Nash equilibrium such that it becomes applicable to more general games. We also generalize the concept of general equilibrium in general equilibrium theory to a more general concept of general equilibrium such that it...

We consider a general economic equilibrium model with divisible commodities and price functions based on the material balance condition. We show that mechanisms for attaining its solution points are closely related to information exchange schemes attributed to the model within its basic...

Urbanization economies - the effects on productivity and utility created endogenously by larger cities - are a fundamental component of both the economic geography of modern societies and the perpetuation of innovation and economic growth at a national level. Cities account for vast majorities...

We develop an equilibrium model of commodity spot and futures markets in which commodity production, consumption, and speculation are endogenously determined. Speculators facilitate hedging by the commodity suppliers. The entry of new speculators thus increases the supply of the commodity and...

We argue that even when macroeconomic variables are constant, underlying microeconomic uncertainty and borrowing constraints generate inflation.We study stochastic economies with fiat money, a central bank, one nondurable commodity, countably many time periods, and a continuum of agents. The...

This paper establishes a clear connection between equilibrium theory, game theory and social choice theory by showing that, for a well defined social choice problem, a condition which is necessary and sufficient to solve this problem--limited arbitrage--is the same as the condition which is...

A general equilibrium model is considered with multiple divisible and multiple indivisible commodities. In models with indivisibles it is always assumed that an indivisible commodity, called money, is present that is used to transfer the value of certain amounts of indivisible goods. For these...

There are two independent lines of equilibrium concepts. To unify these two lines, we generalize the concept of Nash equilibrium to the concept of general Nash equilibrium such that it becomes applicable to all games. We also generalize the concept of general equilibrium in general equilibrium...