Abstract
This paper shows an example of a stochastic rationing equilibrium in the sense of Gale (1978), Green (1978) and Honkapohja and Ito (1979). Consumers and firms maximize their expected utility and profit, respectively, facing stochastic quantity constraints. Actual trades are stochastic and dependent on individual effective demands. The non-Walrasian equilibrium, which is defined as the equalities of effective demand and effective supply in the mean, is obtained at the Walrasian equilibrium prices. Therefore the source of disequilibrium in this equilibrium is not a ‘wrong’ price but a ‘self-confirming’ rational expectation.
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