Скачать или смотреть What is Radner Equilibrium?

Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Radner Equilibrium”
The Radner Equilibrium is A theory suggesting that if economic decision makers have unlimited computational capacity for choice among strategies, then even in the face of uncertainty about the economic environment, an optimal allocation of resources based on competitive equilibrium can be achieved. Radner Equilibrium was introduced by American economist Roy Radner in 1968, and explores the condition of competitive equilibrium under uncertainty.
The concept is an extension of the Arrow–Debreu equilibrium and the base for the first consistent incomplete markets framework.
The theory also states that in such a world there would be no role for money and liquidity. The theory notes that uncertainty about the environment greatly complicates a decision problem, thereby indirectly contributing to the demand for liquidity.

By Barry Norman, Investors Trading Academy