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Restriction of preferences to the set of consumption bundles, in a model with production and consumption bundles

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Author Info
Schalk, S. (Tilburg University, Center for Economic Research)
Abstract

In contrast to the neo-classical theory of Arrow and Debreu, a model of a private ownership economy ispresented, in which production and consumption bundles are treated separately. Each ofthe two types of bundles is assumed to establish a convex cone. Production technologies can convert production bundles into consumption bundles, and the preferences of the consumers are assumed to lie only on the set of consumption bundles. The main theorem of this paper states the existence of a Walrasian equilibrium in this setting.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 89.

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Date of creation: 1999
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Handle: RePEc:dgr:kubcen:199989

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Find related papers by JEL classification:
C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium
C67 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Input-Output Models
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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  1. Schalk, S., 1996. "General equilibrium model with a convex cone as the set of commodity bundles," Research Memorandum 740, Tilburg University, Faculty of Economics and Business Administration. [Downloadable!]
  2. Schalk, S., 1998. "A model distinguishing production and consumption bundles," Research Memorandum 757, Tilburg University, Faculty of Economics and Business Administration. [Downloadable!]
  3. Schalk, S., 1998. "A model distinguishing production and consumption bundles," Discussion Paper 84, Tilburg University, Center for Economic Research. [Downloadable!]
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This page was last updated on 2009-11-25.

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