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Incomplete Markets with Cone Constraints

Incomplete Markets with Cone Constraints

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We show the existence of equilibrium in a two-period incomplete financial market with non-ordered preferences where agents are subject to cone portfolio constraints. The main theorem of the paper is built on the consequences of portfolio decomposition provided in Hahn and Won (2007).

Abstract

1. INTRODUCTION

2. MODEL

3. EXISTENCE OF EQUILIBRIUM

4. CONCLUDING REMARKS

REFERENCES

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