Replication data for: Coarse Competitive Equilibrium and Extreme Prices
- Gul, Faruk
- Pesendorfer, Wolfgang
- Strzalecki, Tomasz
AbstractWe introduce a notion of coarse competitive equilibrium, to study agents' inability to tailor their consumption to prices. Our goal is to incorporate limited cognitive ability (in particular limited attention, memory, and complexity) into the analysis of competitive equilibrium. Compared to standard competitive equilibrium, our concept yields more extreme prices and, when all agents have the same endowment, riskier allocations. We provide a tractable model suitable for general equilibrium analysis as well as asset pricing.
Is supplement to
DOI: 10.1257/aer.20141287 (Text)
Gul, Faruk, Wolfgang Pesendorfer, and Tomasz Strzalecki. “Coarse Competitive Equilibrium and Extreme Prices.” American Economic Review 107, no. 1 (January 2017): 109–37. https://doi.org/10.1257/aer.20141287.
- ID: 10.1257/aer.20141287 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12