Overdemand and Underdemand in Economies with Indivisible Goods and Unit Demands
AbstractWe study an economy where a collection of indivisible goods are sold to a set of buyers who want to buy at most one good.We characterize the set of Walrasian equilibrium price vectors in such an economy using sets of overdemanded and underdemanded goods.Further, we give characterizations for the minimum and the maximum Walrasian equilibrium price vectors of this economy.As a consequence of these characterizations, we can say if overdemanded sets of goods and underdemanded sets of goods exist at a price vector given its position in the price vector space with respect to the minimum and the maximum Walrasian equilibrium price vectors.We also analyze what happens with the Walrasian equilibrium price vectors if one of the buyers or one of the goods is removed from the economy.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-84.
Date of creation: 2006
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Web page: http://center.uvt.nl
invisible goods; Walrasian equilibrium; auctions;
Other versions of this item:
- Debasis Mishra & Dolf Talman, 2007. "Overdemand and underdemand in economies with indivisible goods and unit demand," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 07-03, Indian Statistical Institute, New Delhi, India.
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-30 (All new papers)
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