Article ID Journal Published Year Pages File Type
957533 Journal of Economic Theory 2007 14 Pages PDF
Abstract

We consider an exchange economy with time-inconsistent consumers whose preferences are additively separable. If consumers have identical discount factors, then allocations that are Pareto efficient at the initial date are also renegotiation-proof. In an economy with a sequence of markets, competitive equilibria are Pareto efficient in this sense, and for generic endowments, only if preferences are locally homothetic.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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