Subjective Expectations Equilibrium in Economies with Uncertain Delivery

Abstract

In economies with uncertain delivery, agents trade their endowments for lists instead of bundles. A list specifies a set of bundles such that the agent has the right to receive one of them. In this paper, with continuity conditions on private beliefs about the bundle that will be delivered, we establish existence of a subjective expectations equilibrium.Private information, Uncertain delivery, Subjective expectations equilibrium, General equilibrium, Incomplete information, Real options.