Buying several indivisible goods
This paper studies economies where agents exchange indivisible goods and money. Agents havepotencial use for all indivisible goods and the indivisible goods are differentiated. We assume thatagents have quasilinear utilities in money, have sufficiently money endowments to afford anygroup of objects priced below their reservation values, have reservation values which aresubmodular and satisfy the Cardinality Condition. This Cardinality Condition requires that for eachagent the marginal utility of an object only depends on the number of objects to which it is added,not an their characteristics. Under these assumptions, we show that the set of competitiveequilibrium prices is a non empty lattice and that, in any equilibrium, the price of an object isbetween the social value of the object and its second best use.
|Date of creation:||Dec 1997|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA|
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bikhchandani, Sushil & Mamer, John W., 1997. "Competitive Equilibrium in an Exchange Economy with Indivisibilities," Journal of Economic Theory, Elsevier, vol. 74(2), pages 385-413, June.
- Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November.
- Mamoru Kaneko, 1980.
"The Central Assignment Game and the Assignment Markets,"
Cowles Foundation Discussion Papers
563, Cowles Foundation for Research in Economics, Yale University.
- Kaneko, Mamoru, 1982. "The central assignment game and the assignment markets," Journal of Mathematical Economics, Elsevier, vol. 10(2-3), pages 205-232, September.
- Kaneko, Mamoru & Yamamoto, Yoshitsugu, 1986. "The existence and computation of competitive equilibria in markets with an indivisible commodity," Journal of Economic Theory, Elsevier, vol. 38(1), pages 118-136, February.
- Henry, Claude, 1970. "Indivisibilites dans une Economie d'Echanges. (With English summary.)," Econometrica, Econometric Society, vol. 38(3), pages 542-558, May.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:1997-27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición)
If references are entirely missing, you can add them using this form.