Author(s)

Stephen Morris

Constantinos Skiadas

We formulate necessary and sufficient conditions for the impossibility of interim rationalizable trade between two agents, without assuming common priors or common ex-post values. Since equilibrium trade is always interim rationalizable, the conditions are also sufficient for no equilibrium trade.
Date Published: 2000
Citations: Morris, Stephen, Constantinos Skiadas. 2000. Rationalizable Trade. Games and Economic Behavior. (2)311-323.