Existence of an equilibrium in a competitive economy with indivisibilities and money
In this paper we introduce a model of an exchange economy with indivisible goods and money.There are nitely many agents each of whom owns one unit of each of nitely many di erent types of indivisible goods and certain amount of money. Each type of indivisible good is subject to quality di erentiation.We demonstrate that under fairly mild conditions on demand the economy has a price equilibrium.The proof is based on a generalization of the well-known lemma of Knaster, Kuratowski and Mazurkiewicz (KKM) in combinatorial topology.The results in the paper generalize those of Gale in case of just one indivisible good present in the economy.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
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.:
- Kaneko, Mamoru & Yamamoto, Yoshitsugu, 1986. "The existence and computation of competitive equilibria in markets with an indivisible commodity," Journal of Economic Theory, Elsevier, vol. 38(1), pages 118-136, February.
- Herbert Scarf, 1994.
"The Allocation of Resources in the Presence of Indivisibilities,"
Journal of Economic Perspectives,
American Economic Association, vol. 8(4), pages 111-128, Fall.
- Herbert E. Scarf, 1994. "The Allocation of Resources in the Presence of Indivisibilities," Cowles Foundation Discussion Papers 1068, Cowles Foundation for Research in Economics, Yale University.
- Kaneko, Mamoru, 1982. "The central assignment game and the assignment markets," Journal of Mathematical Economics, Elsevier, vol. 10(2-3), pages 205-232, September.
- Mamoru Kaneko, 1980. "The Central Assignment Game and the Assignment Markets," Cowles Foundation Discussion Papers 563, Cowles Foundation for Research in Economics, Yale University.
- Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
- Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November. Full references (including those not matched with items on IDEAS)