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Arbitrage and the Existence of Competitive Equilibrium Author info | Abstract | Publisher info | Download info | Related research | Statistics Werner, Jan
A general equilibrium model of markets for commodities and assets is considered. The author develops the notion of a price system that admits no arbitrage opportunity and demonstrates the fundamenta l role of this concept for the theory of the existence of a competiti ve equilibrium. A price system admits no arbitrage opportunity for a consumer if every bundle of desired commodities has a positive market value. The author proves that the existence of a price system that a dmits no arbitrage opportunity for all consumers is sufficient for th e existence of an equilibrium. Copyright 1987 by The Econometric Society.
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Article provided by Econometric Society in its journal Econometrica .
Volume (Year): 55 (1987)
Issue (Month): 6 (November)
Pages: 1403-18
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Handle: RePEc:ecm:emetrp:v:55:y:1987:i:6:p:1403-18Contact details of provider: Phone: 1 212 998 3820 Fax: 1 212 995 4487 Email: Web page: http://www.econometricsociety.org/ More information through EDIRC
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