Equilibrium with non-convex preferences: some examples

Le Van, Cuong and Pham, Ngoc-Sang (2021): Equilibrium with non-convex preferences: some examples.

Abstract

We study the existence of equilibrium when agents’ preferences may not be convex. For some specific utility functions, we provide a necessary and sufficient condition under which there exists an equilibrium. The standard approach cannot be directly applied to our examples because the demand correspondence of some agents is neither single valued nor convex valued.

• Item Type: MPRA Paper
• Language: English
• Keywords: Non-convex preferences, general equilibrium.
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies

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