On the Structure of the Set of Fixed Price Equilibria.
Abstract
Working in the framework suggested by Dreze, this paper studies the number of fixed price equilibria and their continuity with respect to the price system. In an exchange economy, the concept of a rationing scheme is introduced, which specifies how shortages are shared among agents. For given utility functions and a given rationing scheme, under stadard assumptions, and existence theorem is recalled, and it is shown that the graph of the equilibrium correspondence, when prices and initial endowments vary, is a piecewise continuously differentiable manifold. Moreover, generically, the number of equilibria for an economy, at given prices, is finite and the set of equilibria varies continuously with the price system and the initial endowments. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1976
- Accession Number
- ADA027229
Entities
People
- Guy Laroque
- Heraklis Polemarchakis
Organizations
- Harvard University