We propose an extension of the standard general equilibrium model with production and incomplete markets to situationsin which (i) private investors have limited information on the returns of specific assets, (ii) managers of firms have limited information on the preferences of individual...

This survey paper prepared for the Handbook of Utility Theory covers the axiomatic foundation of decision making under uncertainty when conditional preferences are allowed to be state dependent, leading to an expected state-dependent utility representation.

The introduction of banks that issue movey and supply balances and pay out their profits as dividends is the natural modification of the model of general competitive equilibrium that encompasses monetary economies. Interest rates are suitable instruments for the control of expected inflation but...