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Core Allocations Are Almost Utility-Maximal

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Author Info
Anderson, Robert M
Abstract

It is known that in large economies with strongly convex preferences, the commodity bundles agents receive at core allocations are near their demand sets. Without convexity, it is known that agents' bundles need not be near their demand sets, although these bundles are demand-like in the sense that they satisfy a perturbation of the definition of demand. In this paper, the author gives sufficient conditions to ensure that core allocations almost maximize utility over the agents' budget sets. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 31 (1990)
Issue (Month): 1 (February)
Pages: 1-9
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Handle: RePEc:ier:iecrev:v:31:y:1990:i:1:p:1-9

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