The introduction of banks that issue money 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. Competitive equilibria exist. Nevertheless, eventhough there is a well defined...

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

The Theory of State Dependent Utility studies the behavior under certainty of a decision-maker whose utility over consequences may depend on the state in which they occur. There is by now a vast literature on the topic, that this paper reviews, trying at the same time to provide an unifying...

The label "Keynes-Negishi equilibria" is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks - as posited in Negishi's 1979 book Microeconomic Foundations of Keynesian...

The theory of games against nature relies on complete preferences among all conceivable acts, i.e. among all potential assignments of consequences to states of nature (case 1). Yet most decision problems call for choosing an element from a limited set of acts. And in games of strategy, the set...

In decentralised market economies, supply-constrained equilibria may persist as coordination failures, sustained but not caused by price rigidities. This feature may be arbitrarily severe, even at prices com- patible with competitive equilibrium. The supply-constraints may originate in rational...

This paper presents a personal perspective on the field of public economics, as I have seen it evolve over the past forty years. Starting in the early fifties, microeconomic theory invaded the age-old field of public finance. A central core of this work consists in deriving general qualitative...

We propose an objective for the firm in a general model of production economies extending over time under uncertainty and with incomplete markets. Trading in commodities and shares of stock occurssequentially on spot markets at all date-events. We derive the objective of the firm from the...

The formulation of uncertainty in terms of exogenous states, introduced by Arrow in 1952 (published 1953), has been extremely fruitful. The paper discusses informally the question, raised sporadically in the oral tradition and put in writing by Kurz in1974 and again recently, whether that...

The introduction of banks which issue and supply balances and payout their profits as dividends is the natural modification of the competitive equilibrium model developed by Arrow and Debreu which encompasses monetary economies. Equilibria in which money serves as a medium of exchange, and...