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Edgeworth and Walras equilibria of an arbitrage-free exchange economy

Listed author(s):
  • Nizar Allouch


    (Department of Economics, Qeen Mary College, University of London - Qeen Mary College, University of London)

  • Monique Florenzano


    (CERMSEM - CEntre de Recherche en Mathématiques, Statistique et Économie Mathématique - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)

In this paper, we first give a direct proof of the existence of Edgeworth equilibria for exchange economies with consumption sets which are (possibly) unbounded below. The key assumption is that the individually rational utility set is compact. It is worth noticing that the statement of this result and its proof do not depend on the dimension or the particular structure of the commodity space. In a second part of the paper, we give conditions under which Edgeworth allocations can be decentralized by continuous prices in a finite dimensional and in an infinite dimensional setting. We then show how these results apply to some finance models.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00086096.

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Date of creation: Jan 2004
Publication status: Published in Economic Theory, Springer Verlag, 2004, 23 (2), pp.353-370. <10.1007/s00199-003-0371-6>
Handle: RePEc:hal:cesptp:halshs-00086096
DOI: 10.1007/s00199-003-0371-6
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  4. Dana, R.-A. & Le Van, C. & Magnien, F., 1999. "On the Different Notions of Arbitrage and Existence of Equilibrium," Papiers d'Economie Mathématique et Applications 1999.34, Université Panthéon-Sorbonne (Paris 1).
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  9. Brown, D.J. & Werner, J., 1992. "Arbitrage and Existence of Equilibrium in Finite Asset Markets," Papers 43, Stanford - Institute for Thoretical Economics.
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  13. Tourky, Rabee, 1998. "A New Approach to the Limit Theorem on the Core of an Economy in Vector Lattices," Journal of Economic Theory, Elsevier, vol. 78(2), pages 321-328, February.
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  25. Herbert E. Scarf, 1965. "The Core of an N Person Game," Cowles Foundation Discussion Papers 182R, Cowles Foundation for Research in Economics, Yale University.
  26. Allouch, Nizar, 2002. "An equilibrium existence result with short selling," Journal of Mathematical Economics, Elsevier, vol. 37(2), pages 81-94, April.
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