Equilibrium pricing and market completion: a counterexample

Journal article: In both arbitrage and utility pricing approaches, the fictitious completion appears as a powerful tool that permits to extend complete markets results to an incomplete markets framework. Does this technique permit to characterize the equilibrium pricing interval? This note provides a negative answer.

Author(s)

Elyes Jouini

Journal
  • Economics Bulletin
Date of publication
  • 2020
Keywords JEL
D53 G11 G13
Pages
  • 1963-1969
Version
  • 1
Volume
  • 40