Indivisible goods, equilibrium and convex economies

Méndez-Naya, Luciano; Méndez Naya, José

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http://hdl.handle.net/2183/40547

Indivisible goods, equilibrium and convex economies

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Mendez_Naya_Jose_2024_ Indivisible goods, equilibrium and convex economies.pdf (477.77 KB)

Identifiers

URI: http://hdl.handle.net/2183/40547

DOI: https://doi.org/10.1016/j.jet.2024.105930

Publication date

2024

Authors

Méndez-Naya, Luciano

Méndez Naya, José

Bibliographic citation

Méndez-Naya, L. & Méndez-Naya, J. (2024). Indivisible goods, equilibrium and convex economies. Journal of Economic Theory, 222, 105930. https://doi.org/10.1016/j.jet.2024.105930

Abstract

[Abstract]: We study the existence of competitive equilibria in economies with indivisible goods. The first result provides a novel sufficient condition for an economy with indivisible goods to have competitive equilibrium. This condition states that the cooperative game associated with the economy has a non-empty core. Crucially, this sufficient condition is also necessary when the economy is convex. This characterization implies that every two-agent convex economy has at least one competitive equilibrium.