Regular economies with ambiguity aversion

Noé Biheng (1, 2) , Jean-Marc Bonnisseau (2, 1)

1 CES - Centre d'économie de la Sorbonne
2 PSE - Paris School of Economics

We consider a family of exchange economies with complete markets where consumers have multiprior preferences representing their ambiguity aversion. Under a linear independence assumption, we prove that regular economies are generic. Regular economies exhibit enjoyable properties: odd finite number of equilibrium prices, local constancy of this number, local differentiable selections of the equilibrium prices. Thus, even if ambiguity aversion is represented by non-differentiable multiprior preferences, economies retain generically the properties of the differentiable approach.

Mots clés: demand function; general equilibrium; ambiguity aver-sion; multiprior preferences; regular economies; Lipschitz behavior

Domaines: Economies et finances

Noé Biheng, Jean-Marc Bonnisseau. Regular economies with ambiguity aversion. Journal of Mathematical Economics, 2015, 59, pp.24-36. ⟨10.1016/j.jmateco.2015.04.004⟩. ⟨halshs-01185486⟩