Published April 13, 2012 | Version v1
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Walrasian equilibrium in large, quasi-linear markets

  • 1. University of Pennsylvania
  • 2. University of Chicago
  • 3. Tsinghua University

Description

In an economy with indivisible goods, a continuum of agents and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.

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Additional details

Identifiers

DOI
10.3982/TE1060
Other
oai:uchicago.tind.io:9554

UChicago Information

Division(s)
Social Sciences Division
Department(s)
Kenneth C. Griffin Department of Economics