Erratum to "Walras and dividends equilibrium with possibly satiated consumers"
AbstractThe main contribution of the paper is to provide a weaker nonsatiation assumption than the one commonly used in the literature to ensure the existence of competitive equilibrium. Our assumption allows for satiation points in the set of individually feasible consumptions, provided that the consumer has satiation points available to him outside this set. As a result, we show the concept of equilibrium with dividends (see Aumann, R.J., Drze, J.H., 1986. Values of markets with satiation or fixed prices. Econometrica 54, 1271-1318; Mas-Collel, A., 1992. Equilibrium theory with possibly satiated preferences. In: Majumdar, M. (Ed.), Equilibrium and Dynamics: Proceedings of the Essays in Honour of David Gale. MacMillan, London, pp. 201-213) is pertinent only when the set of satiation points is included in the set of individually feasible consumptions. Our economic motivation stems from the fact that in decentralized markets, increasing the incomes of consumers through dividends, if it is possible, is costly since it involves the intervention of a social planner. Then, we show, in particular, how in securities markets our weak nonsatiation assumption is satisfied by Werner's (1987) assumption.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Mathematical Economics.
Volume (Year): 45 (2009)
Issue (Month): 3-4 (March)
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Web page: http://www.elsevier.com/locate/jmateco
Satiation Dividends Exchange economy Short-selling;
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- Allouch, Nizar & Florenzano, Monique, 2013. "Edgeworth rejective core and dividends equilibria of satiated exchange economies," Journal of Mathematical Economics, Elsevier, vol. 49(1), pages 1-6.
- Battauz, Anna & De Donno, Marzia & Ortu, Fulvio, 2011. "Intertemporal asset pricing and the marginal utility of wealth," Journal of Mathematical Economics, Elsevier, vol. 47(2), pages 227-244, March.
- Miyazaki, Kentaro & Takekuma, Shin-Ichi, 2013. "A note on the existence of Walras equilibrium in irreducible economies with satiable and non-ordered preferences," Discussion Papers 2013-14, Graduate School of Economics, Hitotsubashi University.
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