Encyclopedia > I > Incomplete markets
Incomplete markets
The Theory of Incomplete Markets is an extension of the general equilibrium approach to intertemporal economies with uncertainty, where the set of available contracts which can be used to transfer wealth across time is limited relative to the possible probabilistic states that an economy might find itself in. Unlike in the standard Arrow-Debreu model where all trade takes place at beginning of time, in an economy with incomplete markets agents trade in sequential spot markets.
Information are taken from Wikipedia, the open encyclopedia, to which contribute many volunteers from around the whole world. Texts are available under the following conditions GNU Free Documentation License.
Encyklopedie (cz) Encyklopédia (sk) Enzyklopädie (de)