utility functions. Our main result is to show that in a multiagent economy, the problem of determining efficient allocations … extending to a stochastic environment Geoffard's (1996) concept of variational utility and his result that variational utility … is equivalent to recursive utility, and then using these results to characterize allocations in a multiagent setting …

We consider discounted-utility models with a reference stream of outcomes. We provide a common framework for the main …