Differential Information Economies: REE-Equilibrium Under Contract Based Approach

The paper investigates economies with differential information from a contract-based approach developed in a series of author’s papers. It clarifies the key notions of DIE-equilibrium and studies the most significant kinds of core and domination, and their conformity with Walrasian Expectations Equilibrium (WEE) and Rational Expectations Equilibrium (REE). We also introduce core and equilibrium with differentiated agents (well correspond to conditionally expected utilities). These notions have a close relationship with REE-equilibrium and clarify an appropriate core and a type of stability. Moreover, the paper presents new theorems on core and quasi-equilibria existence.