Equilibria in economies with asymmetric information and in games with many players

Abstract

This thesis first considers an economy with many agents but asymmetric information. We show the existence of incentive compatible, competitive equilibrium for the case that except for one perfectly divisible good, all other goods are indivisible. As in the previous literature, we need to impose two special conditions associated with indivisible goods. One is a dispersedness assumption on a divisible commodity, and another the desirability of the divisible good. The second part of the thesis considers large games. We show the existence of Nash equilibrium for a game with continuum of players and a compact action space. The players' payoffs depend on their own actions and the mean of the transformed strategy profiles.