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General equilibrium with information sales

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Abstract

Consider a general equilibrium model in which information is an indivisible differentiated commodity for which satiation occurs at one unit. Suppose that uncountably many types of information are possible which can be costlessly combined by agents who desire information only because it helps them to maximize state dependent utilities under uncertainty. Similarity of information is expressed by a metric which reflects substitution possibilities among different information structures. Such a large pure exchange economy in which prices for (differentiated) information structures and (finitely many) ordinary commodities are determined simultaneously is consistent - equilibrium distributions exist.

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Authors and Affiliations

  1. Department of Economics, University of Pennsylvania, 3718 Locust Walk/CR, 19104-6297, Philadelphia, PA, USA

    Beth Allen

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  1. Beth Allen
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Allen, B. General equilibrium with information sales. Theor Decis 21, 1–33 (1986). https://doi.org/10.1007/BF00134168

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