Kurz, Mordecai; Wu, Ho-Mou - 2015
phenomena. The most important Endogenous Uncertainty examined in this paper is price uncertainty which arises when agents do not … Rational Beliefs as in Kurz [1994a]. The trading of endogenous uncertainty is accomplished by using Price Contingent Contracts … (PCC) rather than the Arrow-Debreu state contingent contracts. The paper provides a full construction of the "price state …
