Statements (49)
| Predicate | Object |
|---|---|
| gptkbp:instanceOf |
Economic Concept
|
| gptkbp:assumes |
Perfect Information
No Frictions No Market Power No Transaction Costs |
| gptkbp:assumptionOf |
Arrow-Debreu Model
First Welfare Theorem Second Welfare Theorem |
| gptkbp:contrastsWith |
Incomplete Markets
|
| gptkbp:defines |
A market in which there exists a complete set of contingent claims for every possible state of the world.
|
| gptkbp:enables |
gptkb:Law_of_One_Price
Pareto Efficiency Arbitrage-Free Pricing Complete Arrow-Debreu Securities Complete Insurance Efficient Allocation of Resources Efficient Portfolio Diversification Efficient Risk Sharing Full Hedging of Uncertainty Full Risk Sharing Intertemporal Consumption Allocation Market Clearing in All States Martingale Pricing No Arbitrage Opportunities Optimal Consumption Smoothing Optimal Risk Allocation Risk Neutral Valuation Separation of Risk Preferences and Beliefs State-Price Densities Unique Equilibrium Prices Unique Risk-Neutral Measure Unique State Prices |
| gptkbp:field |
Economics
Finance |
| https://www.w3.org/2000/01/rdf-schema#label |
Complete Markets
|
| gptkbp:implies |
Every risk can be fully insured or hedged.
|
| gptkbp:relatedTo |
Risk Allocation
Contingent Claims Market Completeness State-Contingent Securities |
| gptkbp:studiedBy |
gptkb:Kenneth_Arrow
gptkb:Stephen_Ross gptkb:Lars_Peter_Hansen gptkb:Robert_Lucas gptkb:Gérard_Debreu |
| gptkbp:usedIn |
gptkb:General_Equilibrium_Theory
Asset Pricing Theory |
| gptkbp:bfsParent |
gptkb:General_Equilibrium_Theory
|
| gptkbp:bfsLayer |
7
|