The equilibrium existence duality
We show that with indivisible goods, the existence of competitive equilibrium fundamentally depends on agents’ substitution effects, not their income effects. Our equilibrium existence duality allows us to transport results on the existence of competitive equilibrium from settings with transferable...
| Main Authors: | , , , |
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| Format: | Journal article |
| Language: | English |
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University of Chicago Press
2023
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| _version_ | 1811139375653715968 |
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| author | Baldwin, E Jagadeesan, R Klemperer, P Teytelboym, A |
| author_facet | Baldwin, E Jagadeesan, R Klemperer, P Teytelboym, A |
| author_sort | Baldwin, E |
| collection | OXFORD |
| description | We show that with indivisible goods, the existence of competitive equilibrium fundamentally depends on agents’ substitution effects, not their income effects. Our equilibrium existence duality allows us to transport results on the existence of competitive equilibrium from settings with transferable utility to settings with income effects. One consequence is that net substitutability—which is a strictly weaker condition than gross substitutability—is sufficient for the existence of competitive equilibrium. Further applications give new existence results beyond the case of (net) substitutes. Our results have implications for auction design. |
| first_indexed | 2024-03-07T08:00:20Z |
| format | Journal article |
| id | oxford-uuid:584b7a9d-fbdf-486f-a964-391b48b00dc1 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-09-25T04:05:05Z |
| publishDate | 2023 |
| publisher | University of Chicago Press |
| record_format | dspace |
| spelling | oxford-uuid:584b7a9d-fbdf-486f-a964-391b48b00dc12024-05-28T08:28:50ZThe equilibrium existence dualityJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:584b7a9d-fbdf-486f-a964-391b48b00dc1EnglishSymplectic ElementsUniversity of Chicago Press2023Baldwin, EJagadeesan, RKlemperer, PTeytelboym, AWe show that with indivisible goods, the existence of competitive equilibrium fundamentally depends on agents’ substitution effects, not their income effects. Our equilibrium existence duality allows us to transport results on the existence of competitive equilibrium from settings with transferable utility to settings with income effects. One consequence is that net substitutability—which is a strictly weaker condition than gross substitutability—is sufficient for the existence of competitive equilibrium. Further applications give new existence results beyond the case of (net) substitutes. Our results have implications for auction design. |
| spellingShingle | Baldwin, E Jagadeesan, R Klemperer, P Teytelboym, A The equilibrium existence duality |
| title | The equilibrium existence duality |
| title_full | The equilibrium existence duality |
| title_fullStr | The equilibrium existence duality |
| title_full_unstemmed | The equilibrium existence duality |
| title_short | The equilibrium existence duality |
| title_sort | equilibrium existence duality |
| work_keys_str_mv | AT baldwine theequilibriumexistenceduality AT jagadeesanr theequilibriumexistenceduality AT klempererp theequilibriumexistenceduality AT teytelboyma theequilibriumexistenceduality AT baldwine equilibriumexistenceduality AT jagadeesanr equilibriumexistenceduality AT klempererp equilibriumexistenceduality AT teytelboyma equilibriumexistenceduality |