Market games with differential information and infinite dimensional commodity spaces: the core

Abstract

We provide an alternative proof of the existence of core allocationsin exchange economies with differential information and infinitedimensional commodity spaces. We also identify a critical featureof information sharing rules that ensures nonemptiness of the core.In essence, the only condition we require on the sharing rules isthat profitable "insider trading" be prohibited. In the absence ofinsider trading, balancedness is guaranteed and core nonemptinessfollows.