Incomplete markets

Dynamic core concepts Time and uncertainty the absence of blocking in period 0 and at any date-event in period 1. The concepts only differwith respect to the notion of blocking in period 0. To evaluate these concepts, we study three market structures in detail: strongly complete markets, incomplete markets in finance economies, and incomplete markets in settings with multiple commodities. Even when markets are strongly complete, the Classical Core is argued not to be an appropriate concept. For the general case of incompletemarkets, theWeak Sequential Core is the only concept that does not suffer from major defects. © 2011 Elsevier B.V. All rights reserved. 1