AbstractWe introduce the concept of inconsequential arbitrage and, in the context of a model allowing short-sales and half-lines in indifference surfaces, we prove that inconsequential arbitrage is sufficient for existence of equilibrium. With a slightly stronger condition of local nonsatiation than required for existence of equilibrium and with a mild uniformity condition on arbitrage opportunities, we show that the existence of a pareto-optimal allocation implies inconsequential arbitrage, implying that inconsequential arbitrage is necessary and sufficient for existence of an equilibrium.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 561.
Length: 36 pages
Date of creation: 1999
Date of revision:
ARBITRAGE ; ALLOCATIONS ; EQUILIBRIUM;
Other versions of this item:
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brown, Donald & Werner, Jan, 1993.
"Arbitrage and Existence of Equilibrium in Infinite Asset Markets,"
825, California Institute of Technology, Division of the Humanities and Social Sciences.
- Brown, Donald J & Werner, Jan, 1995. "Arbitrage and Existence of Equilibrium in Infinite Asset Markets," Review of Economic Studies, Wiley Blackwell, vol. 62(1), pages 101-14, January.
- Brown, D.J. & Werner, J., 1992. "Arbitrage and Existence of Equilibrium in Finite Asset Markets," Papers 43, Stanford - Institute for Thoretical Economics.
- Brown,Donald & Werner,Jan, 1991. "Arbitrage and existence of equilibrium in infinite asset markets," Discussion Paper Serie A 344, University of Bonn, Germany.
- Page Jr., Frank H. & Wooders, Myrna Holtz, 1996. "A necessary and sufficient condition for the compactness of individually rational and feasible outcomes and the existence of an equilibrium," Economics Letters, Elsevier, vol. 52(2), pages 153-162, August.
- Chichilnisky, G., 1996.
"A Topological Invariant for Competitive Markets,"
1996_16, Columbia University, Department of Economics.
- Grandmont, Jean-Michel, 1977. "Temporary General Equilibrium Theory," Econometrica, Econometric Society, vol. 45(3), pages 535-72, April.
- Reny, Philip J. & Holtz Wooders, Myrna, 1996. "The Partnered Core of a Game without Side Payments," Journal of Economic Theory, Elsevier, vol. 70(2), pages 298-311, August.
- PageJr., Frank H. & Wooders, Myrna H. & Monteiro, Paulo K., 2000.
Journal of Mathematical Economics,
Elsevier, vol. 34(4), pages 439-469, December.
- Page, F.H.Jr. & Wooders, M.H. & Monteiro, P.K., 1999. "Inconsequential Arbitrage," The Warwick Economics Research Paper Series (TWERPS) 561, University of Warwick, Department of Economics.
- Dana, R.-A. & Le Van, C. & Magnien, F., 1999.
"On the Different Notions of Arbitrage and Existence of Equilibrium,"
Papiers d'Economie MathÃÂ©matique et Applications
1999.34, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Dana, Rose-Anne & Le Van, Cuong & Magnien, Francois, 1999. "On the Different Notions of Arbitrage and Existence of Equilibrium," Journal of Economic Theory, Elsevier, vol. 87(1), pages 169-193, July.
- Dana, Rose-Anne & Le Van, Cuong & Magnien, François, 1996. "On the different notions of arbitrage and existence of equilibrium," CEPREMAP Working Papers (Couverture Orange) 9616, CEPREMAP.
- Werner, Jan, 1987. "Arbitrage and the Existence of Competitive Equilibrium," Econometrica, Econometric Society, vol. 55(6), pages 1403-18, November.
- Page Jr., Frank H. & Wooders, Myrna Holtz, 1996. "The Partnered Core of an Economy and the Partnered Competitive Equilibrium," Economics Letters, Elsevier, vol. 52(2), pages 143-152, August.
- Frank H. Page Jr. & (**), Myrna H. Wooders & Paulo K. Monteiro, 1999. "Arbitrage and global cones: Another counterexample," Social Choice and Welfare, Springer, vol. 16(2), pages 337-346.
- Green, Jerry R, 1973. "Temporary General Equilibrium in a Sequential Trading Model with Spot and Futures Transactions," Econometrica, Econometric Society, vol. 41(6), pages 1103-23, November.
- Hart, Oliver D., 1974. "On the existence of equilibrium in a securities model," Journal of Economic Theory, Elsevier, vol. 9(3), pages 293-311, November.
- Gale, D. & Mas-Colell, A., 1975. "An equilibrium existence theorem for a general model without ordered preferences," Journal of Mathematical Economics, Elsevier, vol. 2(1), pages 9-15, March.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.