Generalized equilibrium in an economy without the survival assumption
AbstractIt is well known that an equilibrium in the Arrow-Debreu model mayfail to exist if a very restrictive condition called the survivalassumption is not satisfied. We study two approaches that allowfor the relaxation of this condition. Danilov and Sotskov (1990),and Florig (2001) developed a concept of a generalized equilibriumbased on a notion of hierarchic prices. Marakulin (1990) proposeda concept of an equilibrium with non-standard prices. In thispaper, we establish the equivalence between non-standard andhierarchic equilibria. Furthermore, we show that for any specifiedsystem of dividends the set of such equilibria is genericallyfinite. We also provide a generic characterization of hierarchicequilibria and give an easy proof of the core equivalence result.
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Bibliographic InfoPaper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number EI 2002-49.
Date of creation: 16 Dec 2002
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Competitive equilibrium; Constrained equilibrium; Hierarchic price; Non-standard analysis; Satiation;
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