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Characterization of the walrasian equilibria of the assignment model

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  • Debasis Mishra

    (Indian Statistical Institute, New Delhi)

  • Dolf Talman

    (Tilburg University Institute, New Delhi)

Abstract

We study the assignment model where a collection of indivisible goods are sold to a set of buyers who want to buy at most one good. We characterize the extreme and interior points of the set of Walrasian equilibrium price vectors for this model. Our characterizations are in terms of demand sets of buyers. Using these characterizations, we also give a unique characterization of the minimum and the maximum Walrasian equilibrium price vectors. Also, necessary and suncient conditions are given under which the interior of the set of Walrasian equilibrium price vectors is non-empty. Several of the results are derived by interpreting Walrasian equilibrium price vectors as potential functions of an appropriate directed graph.

Suggested Citation

  • Debasis Mishra & Dolf Talman, 2008. "Characterization of the walrasian equilibria of the assignment model," Discussion Papers 08-07, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:08-07
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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