Dierker, Egbert; Dierker, Hildegard; Grodal, Birgit - Økonomisk Institut, Københavns Universitet - 1999
In this paper we analyze the welfare properties of the set of Drèze equilibria for economies with incomplete markets and firms. The well known fact that a Drèze equilibrium need not be constrained Pareto optimal is often attributed to a lack of coordination between firms. We show that there...