Competitive equilibrium with indivisible objects

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

Abstract

We study exchange economies in which objects are heterogeneous and indivisible, and may not be substitutes for each other. We give new equilibrium existence results with the $p$-substitutability condition, under which a certain degree of complementarity among objects is permitted according to the parameter vector $p$. Moreover, we introduce conditions under which the contributions of objects to the social welfare are equilibrium prices.

• Item Type: MPRA Paper
• Language: English
• Keywords: Indivisibility, competitive equilibrium, gross substitutability, p-substitutability
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies

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