Externalities, consumption constraints and regular economies |
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Authors: | Jean-Marc Bonnisseau Elena L. del Mercato |
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Affiliation: | 1. Paris School of Economics, Université Paris 1 Panthéon-Sorbonne, Centre d’Economie de la Sorbonne, 106-112 Boulevard de l’H?pital, 75647, Paris Cedex 13, France
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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 the possibility function. Utility and possibility functions depend on the consumptions of all households. Showing by means of an example that basic assumptions are not enough to guarantee generic regularity, we provide sufficient conditions for generic regularity in the space of endowments and possibility functions. |
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