Logo
Munich Personal RePEc Archive

Competitive equilibrium for indivisible objects

Yang, Yi-You (2013): Competitive equilibrium for indivisible objects.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_57637.pdf]
Preview
PDF
MPRA_paper_57637.pdf

Download (155kB) | Preview

Abstract

We study an exchange economy with indivisible objects that may not be substitutes for each other, and we introduce the p-substitutability condition, a relaxation of the gross substitutes condition of Kelso and Crawford (1982), in which a parameter vector p is adopted to permit complicated types of complementarity. We prove that for any economy E, there exists a corresponding vector p^{E} such that the p^{E}-substitutability condition is sufficient to guarantee the existence of a competitive equilibrium, and that the largest competitive price of each object is equal to its contribution to the social welfare. Our approach relies on a classification result that partitions economies into disjoint similarity classes such that whenever a similarity class contains an economy with an equilibrium, each economy in this class also has an equilibrium.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.