Generic properties of the core and equilibria of pure exchange economies

Rajan, Ashvin Varada

doi:10.1016/s0304-4068(96)00781-1

Cited by 3 publications

(1 citation statement)

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“…Subsequently, there is much literature on the convergences of the cores of different types of economies with different characteristics and infinitely or finitely many agents and on the convergence rate (Aumann, 1979; Debreu, 1975; Ekes, 2003; Lahiri, 2007; McLean & Postlewaite, 2005; Minelli & Polemarchakis, 2000; Rajan, 1997; Shapley & Shubik, 1969; Suzuki, 2013).…”

Section: Introductionmentioning

confidence: 99%

The equilibrium of the bargaining game and core convergence theorem on an exchange economy with limited traders

Chen

2022

Bulletin of Econ Res

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Debreu and Scarf (1963), Hildenbrand (1974), Aumann (1964, Dierker (1975), Bewley (1973), and others have shown that the core of an exchange economy with infinitely many or finitely many traders converges. However, an exchange economy does not always consist of infinitely many or finitely many traders. This note provides proof of the core convergence theorem on an exchange economy with limited traders by a bargaining game methodology. The main contribution of this note is to innovate the equilibrium solution to the bargaining game in the exchange economy. In this note, the concept of common payoff is introduced; in the bargaining game of a coalition on its common payoff, all coalition members will get the same distribution, thus the distribution scheme of the cooperation surplus of the exchange economy is determined.This note shows that the bargaining game among the traders on the distribution of the cooperation surplus will make the pure exchange economy with limited traders converge to the Walrasian equilibrium, all the allocations other than the Walrasian equilibrium will be eliminated from the core of this economy.

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Section: Introductionmentioning

confidence: 99%

The equilibrium of the bargaining game and core convergence theorem on an exchange economy with limited traders

Chen

2022

Bulletin of Econ Res

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A remark on the equilibrium set of pureexchange economies

Rajan

1997

Economic Theory

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The equilibrium set of economies with a continuous consumption space

Covarrubias

2011

Journal of Mathematical Economics

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La serie de Documentos de Investigación del Banco de México divulga resultados preliminares de trabajos de investigación económica realizados en el Banco de México con la finalidad de propiciar el intercambio y debate de ideas. El contenido de los Documentos de Investigación, así como las conclusiones que de ellos se derivan, son responsabilidad exclusiva de los autores y no reflejan necesariamente las del Banco de México.The Working Papers series of Banco de México disseminates preliminary results of economic research conducted at Banco de México in order to promote the exchange and debate of ideas. The views and conclusions presented in the Working Papers are exclusively the responsibility of the authors and do not necessarily reflect those of Banco de México. Documento de InvestigaciónWorking Paper 2010-10 2010-10The Equilibrium Set of Economies with a Continuous Consumption Space * Enrique Covarrubias † Banco de México AbstractWe study global properties of the equilibrium set of economies with a continuous consumption space. This framework is important in intertemporal allocation problems (continuous or infinite time), financial markets with uncertainty (continuous states of nature) and commodity differentiation. We show that the equilibrium set is contractible which implies that (i) there is a continuous economic policy linking any two equilibrium states, and (ii) any two such economic policies can be continuously deformed one into the other. We also give three equivalent formulations of the problem of global uniqueness of equilibria in terms of the projection map from the equilibrium set to the space of parameters. We finally study the local and global effects that the existence of critical economies has on the equilibrium set. Keywords: General equilibrium; infinite economies; intertemporal choice; uncertainty. JEL Classification: D50, D51, D80, D90. ResumenEstudiamos propiedades globales del conjunto de equilibrio para economías con un espacio de consumo continuo. Este marco es importante en problemas de asignación intertemporal (tiempo continuo o infinito), mercados financieros con incertidumbre (estados de la naturaleza continuos) y diferenciación de productos. Demostramos que el conjunto de equilibrio es contraíble lo que implica que (i) existe una política económica continua uniendo dos estados de equilibrio cualesquiera , y (ii) cualesquiera dos de estas políticas económicas pueden ser deformadas continuamente una en la otra. Asimismo, proponemos tres formulaciones equivalentes del problema de unicidad global de equilibrios en términos de la proyección que va del conjunto de equilibrio al espacio de parámetros. Finalmente, estudiamos los efectos locales y globales que la existencia de economías críticas genera en el conjunto de equilibrio. Palabras Clave: Equilibrio general; economías infinitas; elección intertemporal; incertidumbre.

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Generic properties of the core and equilibria of pure exchange economies

Cited by 3 publications

References 11 publications

The equilibrium of the bargaining game and core convergence theorem on an exchange economy with limited traders

The equilibrium of the bargaining game and core convergence theorem on an exchange economy with limited traders

A remark on the equilibrium set of pureexchange economies

The equilibrium set of economies with a continuous consumption space

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