IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Competitive Equilibrium with Indivisibilities

Author Info

Listed author(s):
  • Jinpeng Ma

    ()

    (Economics, Rutgers University, Camden, NJ 08102)

Abstract

This paper studies an exchange economy with a finite number of agents in which each agent is initially endowed with a finite number of (personalized) indivisible commodities. We observe that the core equivalence theorem may not hold for this economy when the coalitional form game is generated in the standard manner. We provide an alternative definition of the coalitional form game to resolve this problem so that the balancedness of the new defined game provides a useful necessary and sufficient condition for the existence of competitive equilibrium for the original economy. We also observe that the nice strategy proof property of the minimum competitive price mechanism in the assignment problem and the Vickrey auction model does not carry over to the above economy. We show that examples of exchange economies exist for which no competitive price mechanism is individually (coalitionally) strategy proof.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sas.rutgers.edu/virtual/snde/wp/1998-09.pdf
Download Restriction: no

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199809.

as
in new window

Length:
Date of creation: 12 Apr 1998
Handle: RePEc:rut:rutres:199809
Contact details of provider: Postal:
New Jersey Hall - 75 Hamilton Street, New Brunswick, NJ 08901-1248

Phone: (732) 932-7363
Fax: (732) 932-7416
Web page: http://economics.rutgers.edu/

More information through EDIRC

Keywords: competitive equilibrium;

Other versions of this item:

Find related papers by JEL classification:
  • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

References listed on IDEAS
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.:

as
in new window


  1. Roth,Alvin E. & Sotomayor,Marilda A. Oliveira, 1992. "Two-Sided Matching," Cambridge Books, Cambridge University Press, number 9780521437882, Diciembre.
  2. 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.
  3. Demange, Gabrielle & Gale, David, 1985. "The Strategy Structure of Two-sided Matching Markets," Econometrica, Econometric Society, vol. 53(4), pages 873-888, July.
  4. Tjalling C. Koopmans & Martin J. Beckmann, 1955. "Assignment Problems and the Location of Economic Activities," Cowles Foundation Discussion Papers 4, Cowles Foundation for Research in Economics, Yale University.
  5. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, 03.
  6. Roth, Alvin E, 1984. "Stability and Polarization of Interests in Job Matching," Econometrica, Econometric Society, vol. 52(1), pages 47-57, January.
  7. Gul, F. & Stacchetti, E., 1997. "Walrasian Equilibrium Without Complementarities," Papers 97-03, Michigan - Center for Research on Economic & Social Theory.
  8. Kaneko, Mamoru, 1982. "The central assignment game and the assignment markets," Journal of Mathematical Economics, Elsevier, vol. 10(2-3), pages 205-232, September.
  9. Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
  10. 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.
  11. John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer.
  12. 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.
  13. Kaneko, Mamoru, 1983. "Housing markets with indivisibilities," Journal of Urban Economics, Elsevier, vol. 13(1), pages 22-50, January.
  14. Leonard, Herman B, 1983. "Elicitation of Honest Preferences for the Assignment of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 461-479, June.
  15. Martine Quinzii, 1982. "Core and Competitive Equilibria with Indivisibilities," Cowles Foundation Discussion Papers 644, Cowles Foundation for Research in Economics, Yale University.
Full references (including those not matched with items on IDEAS)

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

as
in new window


Cited by:

  1. van der Laan, Gerard & Talman, Dolf & Yang, Zaifu, 2002. "Existence and Welfare Properties of Equilibrium in an Exchange Economy with Multiple Divisible and Indivisible Commodities and Linear Production Technologies," Journal of Economic Theory, Elsevier, vol. 103(2), pages 411-428, April.
  2. Jinpeng Ma, 1997. "Walrasian Equilibria in a Production Economy with Indivisibilities," Departmental Working Papers 199712, Rutgers University, Department of Economics.
  3. Ma, Jinpeng & Nie, Fusheng, 2003. "Walrasian equilibrium in an exchange economy with indivisibilities," Mathematical Social Sciences, Elsevier, vol. 46(2), pages 159-192, October.
  4. Jinpeng Ma, 1997. "English Auctions and Walrasian Equilibria with Multiple Objects: a dynamic approach," Departmental Working Papers 199702, Rutgers University, Department of Economics.
  5. Arribas, I. & Urbano, A., 2017. "Multiproduct trading with a common agent under complete information: Existence and characterization of Nash equilibrium," Journal of Economic Theory, Elsevier, vol. 167(C), pages 14-38.
  6. Koshevoy, Gleb A. & Talman, Dolf, 2006. "Competitive equilibria in economies with multiple indivisible and multiple divisible commodities," Journal of Mathematical Economics, Elsevier, vol. 42(2), pages 216-226, April.
  7. van der Laan, G. & Talman, A.J.J. & Yang, Z.F., 2002. "Existence and welfare properties of equilibrium in an exchange economy with multiple divisible and indivisible commodities and linear production," Other publications TiSEM 5a5610bf-4f85-4a25-963c-c, Tilburg University, School of Economics and Management.
  8. Akiyoshi Shioura & Zaifu Yang, 2013. "Equilibrium, Auction, Multiple Substitutes and Complements," Discussion Papers 13/17, Department of Economics, University of York.
  9. Ma, Jinpeng, 2001. "Job Matching and Coalition Formation with Utility or Disutility of Co-workers," Games and Economic Behavior, Elsevier, vol. 34(1), pages 83-103, January.
  10. Yang, Yi-You, 2015. "On the Maximal Domain Theorem," MPRA Paper 67265, University Library of Munich, Germany.
  11. Koshevoy, G.A. & Talman, A.J.J., 2006. "Competitive Equilibria in Economies with Multiple Divisible and Indivisible Commodities and No Money," Discussion Paper 2006-51, Tilburg University, Center for Economic Research.
  12. Bikhchandani, Sushil & Ostroy, Joseph M., 2002. "The Package Assignment Model," Journal of Economic Theory, Elsevier, vol. 107(2), pages 377-406, December.
  13. Elizabeth Baldwin & Paul Klemperer, 2015. "Understanding Preferences: “Demand Types”, and the Existence of Equilibrium with Indivisibilities," Economics Papers 2015-W10, Economics Group, Nuffield College, University of Oxford.
  14. van der Laan, G. & Talman, A.J.J. & Yang, Z.F., 1999. "Existence and Welfare Properties of Equilibrium in an Exchange Economy with Multiple Divisible, Indivisible Commodities and Linear Production Technologies," Discussion Paper 1999-76, Tilburg University, Center for Economic Research.
  15. Yang, Zaifu, 2003. "A competitive market model for indivisible commodities," Economics Letters, Elsevier, vol. 78(1), pages 41-47, January.
  16. Yang, Yi-You, 2012. "Free disposal, monotonicity and equilibrium," MPRA Paper 42585, University Library of Munich, Germany.
  17. Satoru Fujishige & Zaifu Yang, 2015. "Decentralised Random Competitive Dynamic Market Processes," Discussion Papers 15/27, Department of Economics, University of York.
  18. Yang, Yi-You, 2013. "Competitive equilibrium for indivisible objects," MPRA Paper 57637, University Library of Munich, Germany, revised 28 Jul 2014.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Access and download statistics

When requesting a correction, please mention this item's handle: RePEc:rut:rutres:199809. 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: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.