Equilibrium prices when the sunspot variable is continuous. (Q1867540)

Sunspot equilibrium prices are studied in nonconvex economies with perfect markets and a continuous sunspot variable. The main result is that every sunspot equilibrium allocation can be supported by prices that, when adjusted for probabilities, are constant across states. The result extends to the case of a finite number of equally probable states under a nonsatiation condition, but does not extend to general discrete state spaces.