Rationalizable Trade, Games and Economic Behavior
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.
Stephen Morris, Constantinos Skiadas
Morris, Stephen, and Constantinos Skiadas. 2000. Rationalizable Trade. Games and Economic Behavior. 31(2): 311-323.