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Externalities, Consumption Constraints and Regular Economies

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Abstract

We consider a general model of pure exchange economies with consumption externalities. Households may have different consumption sets and each consumption set is described by a function called possibility function. Utility and possibility functions depend on the consumptions of all households. Our goal is to give sufficient conditions for the regularity of such economies. We prove that, generically, economies are regular in the space of endowments and possibility functions.

Suggested Citation

  • Jean-Marc Bonnisseau & Elena L. del Mercato, 2008. "Externalities, Consumption Constraints and Regular Economies," CSEF Working Papers 195, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 01 Dec 2009.
    • Handle: RePEc:sef:csefwp:195
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    Cited by:

    1. Elena L. Mercato & Vincenzo Platino, 2017. "Private ownership economies with externalities and existence of competitive equilibria: a differentiable approach," Journal of Economics, Springer, vol. 121(1), pages 75-98, May.
    2. Christian Pietro & Maria Gabriella Graziano & Vincenzo Platino, 2022. "Social loss with respect to the core of an economy with externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 487-508, April.
    3. Nguyen, Van-Quy, 2021. "Endowment-regarding preferences," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    4. Van Quy Nguyen, 2020. "Endowments-regarding preferences," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02966848, HAL.
    5. Jean-Marc Bonnisseau & Antoine Mandel & Yann Toma & François-Guy Trébulle, 2015. "Penser le changement climatique," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01496167, HAL.
    6. Elena L. Mercato & Vincenzo Platino, 2017. "On the regularity of smooth production economies with externalities: competitive equilibrium à la Nash," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(1), pages 287-307, January.
    7. Vincenzo Platino, 2021. "Externalities in private ownership production economies with possibility functions. An existence result," Metroeconomica, Wiley Blackwell, vol. 72(3), pages 509-525, July.
    8. Nikolas Tsakas & Dimitrios Xefteris & Nicholas Ziros, 2021. "Vote Trading in Power-Sharing Systems: A Laboratory Investigation," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1849-1882.
    9. Ericson Richard E. & Kung Fan-chin, 2015. "Fundamental Non-convexity and Externalities: A Differentiable Approach," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 15(1), pages 49-62, January.
    10. Yves Balasko, 2013. "Social demand functions in general equilibrium," Textos para discussão 609, Department of Economics PUC-Rio (Brazil).
    11. Balasko, Yves, 2015. "Wealth concerns and equilibrium," Journal of Mathematical Economics, Elsevier, vol. 59(C), pages 92-101.
    12. Van Quy Nguyen, 2020. "Endowments-regarding preferences," Post-Print halshs-02966848, HAL.
    13. Van Quy Nguyen, 2020. "Endowments-regarding preferences," Documents de travail du Centre d'Economie de la Sorbonne 20017, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    14. Michael Zierhut, 2021. "Generic regularity of differentiated product oligopolies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(1), pages 341-374, February.

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    More about this item

    Keywords

    Externalities; consumption constraints; competitive equilibrium; regular economies;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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