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|
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