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Walrasian equilibrium in large, quasi-linear markets

Author

Listed:
  • , M.

    (Wharton School, University of Pennsylvania)

  • , Glen

    (Department of Economics, University of Chicago)

  • White, Alexander

    (School of Economics and Management, Tsinghua University)

Abstract

In an economy with indivisible goods, a continuum of agents and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.

Suggested Citation

  • , M. & , Glen & White, Alexander, 2013. "Walrasian equilibrium in large, quasi-linear markets," Theoretical Economics, Econometric Society, vol. 8(2), May.
    • Handle: RePEc:the:publsh:1060
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Chao Huang, 2022. "Two-sided matching with firms' complementary preferences," Papers 2205.05599, arXiv.org, revised May 2022.
    2. Martin Bichler & Vladimir Fux & Jacob Goeree, 2018. "A Matter of Equality: Linear Pricing in Combinatorial Exchanges," Information Systems Research, INFORMS, vol. 29(4), pages 1024-1043, December.
    3. Chao Huang, 2021. "Unidirectional substitutes and complements," Papers 2108.12572, arXiv.org.
    4. Michael Ostrovsky & Michael Schwarz, 2018. "Carpooling and the Economics of Self-Driving Cars," NBER Working Papers 24349, National Bureau of Economic Research, Inc.
    5. Jean Flemming, 2018. "Costly Commuting and the Job Ladder," 2018 Meeting Papers 100, Society for Economic Dynamics.
    6. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    7. Hatfield, John William & Kominers, Scott Duke, 2015. "Multilateral matching," Journal of Economic Theory, Elsevier, vol. 156(C), pages 175-206.
    8. Yannai A. Gonczarowski & Scott Duke Kominers & Ran I. Shorrer, 2019. "To Infinity and Beyond: A General Framework for Scaling Economic Theories," Papers 1906.10333, arXiv.org, revised Apr 2023.
    9. Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2019. "On Human Capital and Team Stability," Journal of Human Capital, University of Chicago Press, vol. 13(2), pages 236-259.
    10. Elizabeth Baldwin & Paul Klemperer, 2019. "Understanding Preferences: “Demand Types”, and the Existence of Equilibrium With Indivisibilities," Econometrica, Econometric Society, vol. 87(3), pages 867-932, May.
    11. Pierre-Andr'e Chiappori & Alfred Galichon & Bernard Salani'e, 2021. "On Human Capital and Team Stability," Papers 2102.06487, arXiv.org.
    12. Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2012. "The Roommate Problem is More Stable than You Think," SciencePo Working papers Main hal-03588302, HAL.
    13. Ahmadzadeh, Amirreza & Kamali-Shahdadi, Behrang, 2023. "Matching Unskilled/Skilled Workers to Firms Facing Budget Constraints," TSE Working Papers 23-1446, Toulouse School of Economics (TSE).
    14. Gerasimos T. Soldatos, 2020. "Merit goods and excise taxation in quasilinear markets for complementary private consumption," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 551-566.
    15. Chao Huang, 2022. "Firm-worker hypergraphs," Papers 2211.06887, arXiv.org, revised Nov 2023.
    16. Chao Huang, 2021. "Stable matching: an integer programming approach," Papers 2103.03418, arXiv.org, revised Apr 2022.
    17. Roy Allen, 2019. "Injectivity and the Law of Demand," Papers 1908.05714, arXiv.org.
    18. Hashimoto, Tadashi, 2018. "The generalized random priority mechanism with budgets," Journal of Economic Theory, Elsevier, vol. 177(C), pages 708-733.
    19. Danilov, V. & Koshevoy, G. & Lang, C., 2013. "Equilibria in Markets with Indivisible Goods," Journal of the New Economic Association, New Economic Association, vol. 18(2), pages 10-34.
    20. repec:hal:spmain:info:hdl:2441/3sd5loegec9d3o795888da61tp is not listed on IDEAS

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    More about this item

    Keywords

    Walrasian equilibrium; quasilinear utility; indivisible goods; continuum economies; complementary preferences;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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