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Abstract
We prove the existence of Radner equilibrium of plans, price and price expectations in incomplete markets with non-ordered preferences which are subject to portfolio constraints. In particular, the paper extends the results of Werner (1989) to constrained incomplete markets by providing a unifying framework for a variety of restrictions on the risk-sharing role of redundant assets. |
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Keywords Radner equilibrium, Portfolio constraints, Redundant assets, Incomplete markets, Arbitrage, Non-ordered preferences |
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JEL classification codes C62, D51 |
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![]() Journal of the Korean Econometric Society |
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