We analyze the ex ante incentive compatible core for replicated private information economies. We show that any allocation in the core when the economy is replicated sufficiently often is approximately Walrasian for the associated Arrow–Debreu economy.  2004 Elsevier Inc. All rights reserved. JEL classification: C7; C71; D5

We present an auction-based algorithm for computing market equilibrium prices in a production model, in which producers have a single linear production constraint, and consumers have linear utility functions. We provide algorithms for both the Fisher and Arrow-Debreu versions of the problem.

We show that financial innovations that change the collateral capacity of assets in the economy can affect investment even in the absence of any shift in utilities, productivity, or asset payoffs. First we show that the ability to leverage an asset by selling non-contingent promises can generate over-investment compared to the Arrow-Debreu level. Second, we show that the introduction of naked C...

One hundred and thirty years after the work of Ludwig Boltzmann on the interpretation of the irreversibility of physical phenomena, and one century after Einstein's formulation of Special Relativity, we are still not sure what we mean when we talk of “time” or “arrow of time”. We shall try to show that one source of this difficulty is our tendency to confuse, at least verbally, time and becomin...

In our everyday lives we have the sense that time flows inexorably from the past into the future; that time has a definite direction; and that the arrow of time points towards a future of greater entropy and disorder. But in the microscopic world of atoms and molecules the direction of time is indeterminate and ambiguous. The true nature of time is somewhat mysterious. We creatures of time sens...