Abstract
A necessary condition for realization by a decentralized finite-dimensional mechanism is proved. The concepts of the realization of a time sequence of allocations by a decentralized temporal process and by the particular more realistic class of decentralized evolutionary temporal processes are defined. The above condition shows that the optimal allocation in a simple model for intertemporal production and consumption can be realized by a decentralized temporal process but not by a decentralized evolutionary process which uses either a finite number of verification conditions or a finite-dimensional message space.
Original language | English (US) |
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Pages (from-to) | 313-345 |
Number of pages | 33 |
Journal | Journal of Economic Theory |
Volume | 51 |
Issue number | 2 |
DOIs | |
State | Published - Aug 1990 |