'Equilibrium in thin markets under restricted participation'
We consider a market of financial securities, in which traders may be restricted to trade some of the securities. The market is assumed thin: traders may influence the market and all strategically trade against their price impacts. We prove existence and uniqueness of the equilibrium even when traders are heterogeneous with respect to their beliefs, risk tolerances and endowments. An efficient algorithm is provided to numerically obtain the equilibrium prices and allocations given market's inputs. Surprisingly, restrictions could increase the market's welfare if the traders agree to disagree on the variance-covariance matrix. This is a joint work with C. Kardaras (LSE).