Arrow-Debreu Security / Arrow Security

Arrow-Debreu Security (State-Price Security)

Arrow-Debreu security, is a contract that agrees to pay one unit of a numeraire (a currency or a commodity) if a particular state occurs at a particular time in the future and pays zero numeraire in all the other states.

In an Arrow-Debreu model, trading occurs only once at the beginning of time.

→Arrow-Debreu Market

(Wikipedia)
http://en.wikipedia.org/wiki/Arrow-Debreu_security

Arrow Security

An Arrow Security is an instrument with a fixed payout of one unit in a specified state and no payout in other states.

In contrast to the Arrow-Debreu market structure model, an Arrow market is a market in which the individual agents engage in trading assets at every time period t.

→Sequential Market

(Wikipedia)
http://en.wikipedia.org/wiki/Arrow_security