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Existence of Walrasian equilibria with discontinuous, non-ordered, interdependent and price-dependent preferences, without free disposal, and without compact consumption sets

Author

Listed:
  • Konrad Podczeck

    (Universität Wien)

  • Nicholas C. Yannelis

    (The University of Iowa)

Abstract

We extend a result on existence of Walrasian equilibria in He and Yannelis (Econ Theory 61:497–513, 2016) by replacing the compactness assumption on consumption sets made there by the standard assumption that these sets are closed and bounded from below. This provides a positive answer to a question explicitly raised in He and Yannelis (Econ Theory 61:497–513, 2016). Our new equilibrium existence theorem generalizes many results in the literature as we do not require any transitivity or completeness or continuity assumption on preferences, initial endowments need not be in the interior of the consumption sets, preferences may be interdependent and price-dependent, and no monotonicity or local non satiation is needed for any of the agents.

Suggested Citation

  • Konrad Podczeck & Nicholas C. Yannelis, 2022. "Existence of Walrasian equilibria with discontinuous, non-ordered, interdependent and price-dependent preferences, without free disposal, and without compact consumption sets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 413-420, April.
    • Handle: RePEc:spr:joecth:v:73:y:2022:i:2:d:10.1007_s00199-021-01400-6
    DOI: 10.1007/s00199-021-01400-6
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    References listed on IDEAS

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    1. Philip J. Reny, 2016. "Equilibrium in discontinuous games without complete or transitive preferences," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(1), pages 1-4, April.
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    Cited by:

    1. Rabah Amir & Bernard Cornet & M. Ali Khan & David Levine & Edward C. Prescott, 2022. "Special Issue in honor of Nicholas C. Yannelis – Part II," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 377-385, April.

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    More about this item

    Keywords

    Continuous inclusion property; Exchange economy; Existence of Walrasian equilibrium;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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