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Manipulation-proof equilibrium in atomless economies with commodity differentiation

Listed author(s):
  • Mário Rui Páscoa


    (Faculdade de Economia, Universidade Nova de Lisboa, Travessa Estêv ao Pinto . P-1099-032 Lisboa, PORTUGAL)

  • Carlos Hervés-Beloso

    (Departamento de Matemáticas, Universidad de Vigo, Aptdo 874, E-36200 Vigo, SPAIN)

  • Emma Moreno-García


    (Faculdade de Economia, Universidade Nova de Lisboa, Travessa Estêv ao Pinto . P-1099-032 Lisboa, PORTUGAL)

In this paper, we introduce a perfect competition test which checks the incentives of arbitrarily small coalitions to behave strategically in endowments and preferences. We apply this coalitional incentive compatibility test to atomless economies with a continuum of differentiated commodities. We show that, under thickness conditions, economies with a finite number of types and economies whose set of agents' preferences is compact, pass this perfect competition test. Limiting results for replica economies are also presented.

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Article provided by Springer & Society for the Advancement of Economic Theory (SAET) in its journal Economic Theory.

Volume (Year): 14 (1999)
Issue (Month): 3 ()
Pages: 545-563

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Handle: RePEc:spr:joecth:v:14:y:1999:i:3:p:545-563
Note: Received: July 25, 1997; revised version: December 5, 1998
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