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On the Shapley-Scarf Economy: The Case of Multiple Types of Indivisible Goods

  • Hideo Konishi


    (Boston College)

  • Thomas Quint


    (University of Nevada at Reno)

  • Jun Wako


    (Gakushuuin University)

We study a generalization of Shapley-Scarf's (1974) economy in which multiple types of indivisible goods are traded. We show that many of the distinctive results from the Shapley-Scarf economy do not carry over to this model, even if agents' preferences are strict and can be represented by additively separable utility functions. The core may be empty. The strict core, if nonempty, may be multi-valued, and might not coincide with the set of competitive allocations. Furthermore, there is no Pareto efficient, individually rational, and strategy-proof social choice rule. We also show that the core may be empty in the class of economies with a single type of indivisible good and agents consuming multiple units, even if no complementarity exists among the goods.

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Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 484.

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Length: 16 pages
Date of creation: 20 Jul 2000
Date of revision:
Publication status: published, Journal of Mathematical Economics 35, 1-15, (2001).
Handle: RePEc:boc:bocoec:484
Contact details of provider: Postal: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA
Phone: 617-552-3670
Fax: +1-617-552-2308
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