The veto mechanism in atomic differential information economies

Abstract

We establish new characterizations of Walrasian expectations equilibria based on the veto mechanism in the framework of differential information economies with a complete finite measure space of agents. We show that it is enough to consider the veto power of a single coalition, consisting of the entire set of agents, to obtain the Aubin private core. Moreover, we investigate on the veto power of arbitrarily small and big coalitions, providing an extension to mixed markets of well known Schmeidler (1972) and Vind’s (1972) results in terms of Aubin private core allocations.