On characterizing optimality of stochastic competitive processes

Research output: Contribution to journalArticlepeer-review

Abstract

A condition is provided to replace the transversality condition in characterizing the optimality of competitive processes. This extends the work of W. Brock, L. Hurwicz, and M. Majumdar ("On Characterizing Optimality of Competitive Programs in Terms of Decentralizable Conditions" and "Optimal Intertemporal Allocation Mechanisms and Decentralization of Decisions," Cornell University Working Paper Nos. 333 and 369 (1985)) on providing an informationally decentralizable condition for characterizing optimality in stochastic infinite-horizon models without discounting.

Original languageEnglish (US)
Pages (from-to)316-329
Number of pages14
JournalJournal of Economic Theory
Volume45
Issue number2
DOIs
StatePublished - Aug 1988

ASJC Scopus subject areas

  • Economics and Econometrics

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