Core and Walrasian equilibria when agents' characteristics are extremely dispersed |
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Authors: | Konrad Podczeck |
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Institution: | 1.Institut für Wirtschaftswissenschaften, Universit?t Wien, Hohenstaufengasse 9, 1010 Wien, AUSTRIA (e-mail: konrad.podczeck@univie.ac.at)
,AT |
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Abstract: | Summary. It is shown that core-Walras equivalence fails whenever the commodity space is a non-separable Banach space. The interpretation
is that a large number of agents guarantees core-Walras equivalence only if there is actually a large number of agents relative
to the size of the commodity space. Otherwise a large number of agents means that agents' characteristics may be extremely
dispersed, so that the standard theory of perfect competition fails. Supplementing the core-Walras non-equivalence result,
it is shown that in the framework of economies with weakly compact consumption sets – as developed by Khan and Yannelis (1991)
– the core is always non-empty, even if consumption sets are non-separable.
December 12, 2001; revised version: December 6, 2002
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ID="*" Thanks to E. Dierker, M. Nermuth, R. Tourky, and N. C. Yannelis for helpful discussions and suggestions, and thanks
to a referee for comments which helped to improve the final version. |
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Keywords: | and Phrases: Non-separable commodity space Measure space of agents Core Walrasian equilibrium Core-Walras equivalence |
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