The Max-Convolution Approach to Equilibrium Models with Indivisibilities
AbstractThis paper studies a competitive market model for trading indivisible commodities. Commodities can be desirable or undesirable. Agents' preferences depend on the bundle of commodities and the quantity of money they hold. We assume that agents have quasi-linear utilities in money. Using the max-convolution approach, we demonstrate that the market has a Walrasian equilibrium if and only if the potential market value function is concave with respect to the total initial endowment of commodities. We then identify sufficient conditions on each individual agent's behavior. In particular, we introduce a class of new utility functions, called the class of max-convolution concavity preservable utility functions. This class of utility functions covers both the class of functions which satisfy the gross substitutes condition of Kelso and Crawford (1982), or the single improvement condition, or the no complementarities condition of Gul and Stacchetti (1999), and the class of discrete concave functions of Murota and Shioura (1999).
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 Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 564.
Date of creation: 11 Aug 2004
Date of revision:
Contact details of provider:
Phone: 1 212 998 3820
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
Indivisibility; Equilibrium; Substitutes; Concavity;
Find related papers by JEL classification:
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- D4 - Microeconomics - - Market Structure and Pricing
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Somdeb Lahiri, 2006.
"Existence of Equilibrium for Integer Allocation Problems,"
AccessEcon, vol. 28(14), pages A0.
- Somdeb Lahiri, 2006. "Existence of Equilibrium for Integer Allocation Problems," Computing in Economics and Finance 2006 8, Society for Computational Economics.
- Somdeb Lahiri, 2005. "Consistency and the Competitive Outcome Function," Game Theory and Information 0512002, EconWPA.
- Somdeb Lahiri, 2005. "Manipulation via Endowments in a Market with Profit Maximizing Agents," Game Theory and Information 0511008, EconWPA.
- Somdeb Lahiri, 2005. "Existence of Equilibrium in Discrete Market Games," Game Theory and Information 0512005, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.