Beliefs and Pareto Efficient Sets: A Remark

Thibault Gajdos (1) , Jean-Marc Tallon (1)

1 EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative

We show that, in a two-period economy with uncertainty in the second period, if an allocation is Pareto optimal for a given set of beliefs and remains optimal when these beliefs are changed, then the set of optimal allocations of the two economies must actually coincide. We identify equivalence classes of beliefs giving rise to the same set of Pareto optimal allocations.

Mots clés: Beliefs; Pareto Optimality

Domaines: Economies et finances

Thibault Gajdos, Jean-Marc Tallon. Beliefs and Pareto Efficient Sets: A Remark. Journal of Economic Theory, 2002, 106 (2), pp.467-471. ⟨10.1006/jeth.2001.2899⟩. ⟨halshs-00085912⟩