IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Price-dependent consumption externalities and non-existence of equilibria

  • Noguchi, Mitsunori
Registered author(s):

    We construct a concrete example of an exchange economy which admits no equilibria in the presence of price-dependent consumption externalities. In our example, agents form a finite atomless measure space . A reference coalition of each agent t at a price system p is the subset C(t,p)[subset of]T consisting of those agents whose income falls into a certain income range associated with t. The interdependence of the taste of agent t operates through a reference consumption vector [eta], which represents the aggregated effect on t's taste of the various consumption choices made by all agents in C(t,p). We choose , the mean consumption bundle of all agents in C(t,p), where denotes the assignment of a commodity bundle to agent s and where the measure (1/([mu][C(t,p)]))[mu] may be interpreted as the relative frequencies of contact that t makes with other members in C(t,p). In light of the law of large numbers, the above [eta] can be viewed as the consumption trend of the agents in C(t,p), which influences the taste of t.

    If 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.

    File URL: http://www.sciencedirect.com/science/article/B6VBY-4TGHNHX-1/2/e16347ace0ca192ec71314177a6ccf7d
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Journal of Mathematical Economics.

    Volume (Year): 45 (2009)
    Issue (Month): 3-4 (March)
    Pages: 205-211

    as
    in new window

    Handle: RePEc:eee:mateco:v:45:y:2009:i:3-4:p:205-211
    Contact details of provider: Web page: http://www.elsevier.com/locate/jmateco

    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.:

    as in new window
    1. Bernard Cornet & Mihaela Topuzu, 2005. "Existence of equilibria for economies with externalities and a measure space of consumers," Economic Theory, Springer, vol. 26(2), pages 397-421, 08.
    2. Pollak, Robert A, 1978. "Endogenous Tastes in Demand and Welfare Analysis," American Economic Review, American Economic Association, vol. 68(2), pages 374-79, May.
    3. Pollak, Robert A, 1976. "Interdependent Preferences," American Economic Review, American Economic Association, vol. 66(3), pages 309-20, June.
    4. Greenberg, Joseph & Shitovitz, Benyamin & Wieczorek, Andrzej, 1979. "Existence of equilibria in atomless production economies with price dependent preferences," Journal of Mathematical Economics, Elsevier, vol. 6(1), pages 31-41, March.
    5. Schmeidler, David, 1969. "Competitive Equilibria in Markets with a Continuum of Traders and Incomplete Preferences," Econometrica, Econometric Society, vol. 37(4), pages 578-85, October.
    6. Pollak, Robert A, 1977. "Price Dependent Preferences," American Economic Review, American Economic Association, vol. 67(2), pages 64-75, March.
    7. Noguchi, Mitsunori, 2005. "Interdependent preferences with a continuum of agents," Journal of Mathematical Economics, Elsevier, vol. 41(6), pages 665-686, September.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:45:y:2009:i:3-4:p:205-211. See general 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: (Zhang, Lei)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.