Abstrakt: I demonstrate a straightforward but apparently widely unrecognized implication of the standard requirements for perfect competition: an economy with learning is generally not perfectly competitive. In particular, the economy cannot be perfectly competitive if welfare relevant endogenous learning is feasible and choice heterogeneity is allowed. Endogenous learning is inherently linked to market failure: if the learnt information is not shared with everyone, there is asymmetric information; if it is shared with everyone, externalities prevail. Thus, the conditions for the first and second fundamental welfare theorems generally exclude economies with learning.
Paperet er tilgjengelig på: https://folk.universitetetioslo.no/karineny/workinprogress_files/ThirdTheoremFormal.pdf
