ON MONOPOLISTIC EQUILIBRIA WITH INCOMPLETE MARKETS - THE CASE OF AN EXCHANGE ECONOMY

In this paper, I exhibit some conditions which ensure the generic exis tence of a monopolistic equilibrium with incomplete markets. Nash pric ing behaviours on commodity markets are introduced in a two-period and S state exchange economy with real assets. Financial markets still wo rk competitively. A monopolistic equilibrium with no arbitrage is intr oduced and the pricing strategies are constructed by means of an objec tive demand curve. Conditions ensuring its existence are given. (C) 19 98 Elsevier Science S.A.