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Existence of General Equilibrium for Spatial Economies

Listed author(s):
  • Bernard Cornet

    (Universite Paris I)

  • Jean-Philippe Medecin

    (Universite Paris 1)

We consider a general equilibrium model of a spatial private ownership economy with a continuum of consumers and with a finite number of producers. The space of locations is represented by a compact set and a finite number of physical goods is available at each location. The consumers haveto choose a unique place where to consume and their initial endowments is conditional to their choice of residence. This consumer behavior, a main difference with the Arrow-Debreu world, induces structural non-convexities (on the consumption sets). The notion of spatial equilibria is precisely defined and we provide an existence theorem of such equilibria.

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File URL: http://fmwww.bc.edu/RePEc/es2000/1107.pdf
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Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 1107.

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Date of creation: 01 Aug 2000
Handle: RePEc:ecm:wc2000:1107
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