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Walrasian social orderings in exchange economies

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Author Info
Sakai, Toyotaka

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Abstract

We study social ordering functions in exchange economies. We show that if a social ordering function satisfies certain Pareto, individual rationality, and local independence conditions, then (i) the set of top allocations of the chosen social ordering is contained in the set of Walrasian allocations and is typically non-empty, and (ii) all individually rational but non-Walrasian allocations are typically ranked indifferently. Thus, such a social ordering function is quite similar to the Walrasian correspondence, which can be regarded as the social ordering function whose associated indifference classes are the set of Walrasian allocations and the set of other allocations.

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File URL: http://www.sciencedirect.com/science/article/B6VBY-4SP3SVC-1/2/6ebb885cc8a606d6c31c070f860ebe3c
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Publisher Info
Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 45 (2009)
Issue (Month): 1-2 (January)
Pages: 16-22
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Handle: RePEc:eee:mateco:v:45:y:2009:i:1-2:p:16-22

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Web page: http://www.elsevier.com/locate/jmateco

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Related research
Keywords: Walrasian social choice Social ordering function Arrow's impossibility theorem Local independence Individual rationality Price mechanism;

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This page was last updated on 2009-12-3.


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