Consistent Solutions in Exchange Economies: a Characterization of the Price Mechanism
We characterize the Walrasian allocations correspondence by means of four axioms: consistency, replica invariance, individual rationality and Pareto optimality. It is shown that for any given class of exchange economies any solution that satisfies the axioms is a selection from the Walrasian allocations with slack. Preferences are assumed to be smooth, but may be satiated and non-convex. A class of economies is defined as all economies whose agents' preferences belong to an arbitrary family (finite or infinite) of types. The result can be modified to characterize equal budget Walrasian allocations with slack by replacing individual rationality with individual rationality from equal division. The results are valid also for classes of economies in which core--Walras equivalence does not hold.
|Date of creation:||Nov 1995|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.nirdagan.com/research/
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.:
- van den Nouweland, A. & Peleg, B. & Tijs, S., 1996.
"Axiomatic characterizations of the Walras correspondence for generalized economies,"
Journal of Mathematical Economics,
Elsevier, vol. 25(3), pages 355-372.
- van den Nouweland, C.G.A.M. & Peleg, B. & Tijs, S.H., 1994. "Axiomatic characterizations of the Walras correspondence for generalized economies," Discussion Paper 1994-58, Tilburg University, Center for Economic Research.
- van den Nouweland, C.G.A.M. & Peleg, B. & Tijs, S.H., 1996. "Axiomatic characterizations of the Walras correspondence for generalized economies," Other publications TiSEM 6ac8c569-8178-4176-9ecf-0, Tilburg University, School of Economics and Management.
- Dagan, Nir, 1996.
"A Note on Thomson's Characterizations of the Uniform Rule,"
Journal of Economic Theory,
Elsevier, vol. 69(1), pages 255-261, April.
- Nir Dagan, 1996. "A Note on Thomson's Characterizations of the Uniform Rule," Economic theory and game theory 003, Nir Dagan.
- Thomson, William, 1988. "A study of choice correspondences in economies with a variable number of agents," Journal of Economic Theory, Elsevier, vol. 46(2), pages 237-254, December.
- Klaus B. & Peters H. & Storcken T., 1995.
"Reallocation of an infinetely divisible good,"
012, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Thomson William, 1994. "Consistent Solutions to the Problem of Fair Division When Preferences Are Single-Peaked," Journal of Economic Theory, Elsevier, vol. 63(2), pages 219-245, August.
- Champsaur, Paul & Laroque, Guy, 1981. "Fair allocations in large economies," Journal of Economic Theory, Elsevier, vol. 25(2), pages 269-282, October.
- Peleg, Bezalel, 1985. "An axiomatization of the core of cooperative games without side payments," Journal of Mathematical Economics, Elsevier, vol. 14(2), pages 203-214, April.
- Peleg, B, 1986. "On the Reduced Game Property and Its Converse," International Journal of Game Theory, Springer, vol. 15(3), pages 187-200.
- Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May.
- Lensberg, Terje, 1988. "Stability and the Nash solution," Journal of Economic Theory, Elsevier, vol. 45(2), pages 330-341, August.
- Thomson, William & Zhou, Lin, 1993. "Consistent Solutions in Atomless Economies," Econometrica, Econometric Society, vol. 61(3), pages 575-87, May.
When requesting a correction, please mention this item's handle: RePEc:nid:ndagan:011. 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: (Nir Dagan)
If references are entirely missing, you can add them using this form.