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Walrasian equilibrium in large, quasi-linear markets

Author

Listed:
  • Weyl, E. Glen

    () (Department of Economics, University of Chicago)

  • White, Alexander

    () (School of Economics and Management, Tsinghua University)

  • Azevedo, Eduardo M.

    () (Wharton School, University of Pennsylvania)

Abstract

In an economy with indivisible goods, a continuum of agents and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.

Suggested Citation

  • Weyl, E. Glen & White, Alexander & Azevedo, Eduardo M., 2013. "Walrasian equilibrium in large, quasi-linear markets," Theoretical Economics, Econometric Society, vol. 8(2), May.
  • Handle: RePEc:the:publsh:1060
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    File URL: http://econtheory.org/ojs/index.php/te/article/viewFile/20130281/8771/261
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    References listed on IDEAS

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    1. John William Hatfield & Scott Duke Kominers & Alexandru Nichifor & Michael Ostrovsky & Alexander Westkamp, 2013. "Stability and Competitive Equilibrium in Trading Networks," Journal of Political Economy, University of Chicago Press, vol. 121(5), pages 966-1005.
    2. Khan, M. Ali & Rath, Kali P. & Sun, Yeneng, 1997. "On the Existence of Pure Strategy Equilibria in Games with a Continuum of Players," Journal of Economic Theory, Elsevier, pages 13-46.
    3. Ning Sun & Zaifu Yang, 2006. "Equilibria and Indivisibilities: Gross Substitutes and Complements," Econometrica, Econometric Society, vol. 74(5), pages 1385-1402, September.
    4. Hatfield, John William & Kominers, Scott Duke, 2015. "Multilateral matching," Journal of Economic Theory, Elsevier, vol. 156(C), pages 175-206.
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    Citations

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    Cited by:

    1. Hatfield, John William & Kominers, Scott Duke, 2015. "Multilateral matching," Journal of Economic Theory, Elsevier, vol. 156(C), pages 175-206.
    2. Scott Kominers & Alexander Teytelboym & Vincent Crawford, 2017. "An Invitation to Market Design," Working Papers 2017-069, Human Capital and Economic Opportunity Working Group.
    3. Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2012. "The Roommate Problem is More Stable than You Think," Sciences Po publications info:hdl:2441/3sd5loegec9, Sciences Po.
    4. Elizabeth Baldwin & Paul Klemperer, 2015. "Understanding Preferences: “Demand Types”, and the Existence of Equilibrium with Indivisibilities," Economics Papers 2015-W10, Economics Group, Nuffield College, University of Oxford.
    5. Danilov, V. & Koshevoy, G. & Lang, C., 2013. "Equilibria in Markets with Indivisible Goods," Journal of the New Economic Association, New Economic Association, vol. 18(2), pages 10-34.

    More about this item

    Keywords

    Walrasian equilibrium; quasilinear utility; indivisible goods; continuum economies; complementary preferences;

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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