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Sperner Lemma, Fixed Point Theorems, and the Existence of Equilibrium

Le, Thanh and Le Van, Cuong and Pham, Ngoc-Sang and Sağlam, Çağrı (2020): Sperner Lemma, Fixed Point Theorems, and the Existence of Equilibrium.

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Abstract

In characterizing the existence of general equilibrium, existing studies mainly draw on Brouwer and Kakutani fixed point theorems and, to some extent, Gale-Nikaido-Debreu lemma. In this paper, we show that Sperner lemma can play a role as an alternative powerful tool for the same purpose. Specifically, Sperner lemma can be used to prove those theorems as well as the lemma. Additionally, Kakutani theorem is shown as a corollary of Gale-Nikaido-Debreu lemma. For a demonstration of the use of Sperner lemma to prove general equilibrium existence, we consider two competitive economies marked either by production goods or financial assets. In each case, we successfully provide another proof on the existence of a general equilibrium using only Sperner lemma and without a need to call on the fixed point theorems or the lemma.

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