On the existence of approximated equilibria in discontinuous economies
AbstractIn this paper, we prove an existence theorem for approximated equilibria in a class of discontinuous economies. The existence result is a direct consequence of a discontinuous extension of Brouwer's fixed point Theorem (1912), and is a refinement of several classical results in the standard General Equilibrium with Incomplete markets (GEI) model (e.g., Bottazzi (1995), Duffie and Shafer (1985), Husseini et al. (1990), Geanakoplos and Shafer (1990), Magill and Shafer (1991)). As a by-product, we get the first existence proof of an approximated equilibrium in the GEI model, without perturbing the asset structure nor the endowments. Our main theorem rests on a new topological structure result for the asset equilibrium space and may be of interest by itself.
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Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00287685.
Date of creation: Aug 2005
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Publication status: Published, Journal of Mathematical Economics, 2005, 41, 4-5, 463-481
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general equilibrium; incomplete markets; approximated equilibrium;
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