Radner equilibrium

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Radner equilibrium is an economic concept defined by economist Roy Radner in the context of general equilibrium. The concept is an extension of the Arrow-Debreu equilibrium to allow for the existence of spot markets.

At a Radner equilibrium trade between agents takes place through time and in contrast to the Arrow-Debreu equilibrium, economic agents face a sequence of budget sets, one at each date-state. Thus the model introduces uncertainty to explain the price of a commodity at time t+n as determined at time t.

[edit] External links

• Radner equilibrium