Markets, Arbitrage and Social Choices
AbstractThe paper establishes a clear connection between equilibrium theory and social choice theory by showing that, for a well defined social choice problem, the conditions which are necessary and sufficient to solve this problem are the same as the conditions which are necessary and sufficient to establish existence of a competitive equilibrium. We define a condition of limited arbitrage on the preferences and the endowments of an Arrow-Debreu economy. This bounds the utility gains that the traders can afford from their initial endowments. Theorem 2 proves that limited arbitrage is necessary and sufficient for the existence of a sodal choice rule which allocates society's resources among individuals in a manner which depends continuously and anonymously on their preferences over allocations, and which respects unanimity. Limited arbitrage is also necessary and sufficient for the existence of a competitive equilibrium in the Arrow - Debreu economy, with or without bounds on short sales, Theorem 7. Theorem 4 proves that any market allocation can be achieved as a social choice allocation, i.e. an allocation which is maximal among all feasible allocations according to a social preference defined via a social choice rule which is continuous, anonymous and respects unanimity.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Columbia University, Department of Economics in its series Discussion Papers with number 1991_73.
Length: 22 pages
Date of creation: 1991
Date of revision:
Contact details of provider:
Postal: 1022 International Affairs Building, 420 West 118th Street, New York, NY 10027
Phone: (212) 854-3680
Fax: (212) 854-8059
Web page: http://www.econ.columbia.edu/
More information through EDIRC
competition ; economic equilibrium ; consumption ; demand;
Other versions of this item:
- CHICHILNISKY , Graciela, 1993. "Markets, Arbitrage and Social Choices," CORE Discussion Papers 1993042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Chichilnisky, G., 1992. "Markets, Arbitrage and Social Choice," Papers 93-12, Columbia - Graduate School of Business.
- Chichilnisky, G., 1992. "Markets, Arbitrage and Social Choices," Discussion Papers 1992_59, Columbia University, Department of Economics.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Joseph M. Ostroy, 1995. "Arbitrage of the Flattening Effect of Large Numbers," UCLA Economics Working Papers 737, UCLA Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Discussion Paper Coordinator).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.