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Walrasian equilibrium in large, quasi-linear markets

Author

Listed:
  • , M.

    (Wharton School, University of Pennsylvania)

  • , Glen

    (Department of Economics, University of Chicago)

  • White, Alexander

    (School of Economics and Management, Tsinghua University)

Abstract
In an economy with indivisible goods, a continuum of agents and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.

Suggested Citation

  • , M. & , Glen & White, Alexander, 2013. "Walrasian equilibrium in large, quasi-linear markets," Theoretical Economics, Econometric Society, vol. 8(2), May.
    • Handle: RePEc:the:publsh:1060
    as

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    References listed on IDEAS

    as
    1. John William Hatfield & Scott Duke Kominers & Alexandru Nichifor & Michael Ostrovsky & Alexander Westkamp, 2013. "Stability and Competitive Equilibrium in Trading Networks," Journal of Political Economy, University of Chicago Press, vol. 121(5), pages 966-1005.
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    8. Hatfield, John William & Kominers, Scott Duke, 2015. "Multilateral matching," Journal of Economic Theory, Elsevier, vol. 156(C), pages 175-206.
    9. Rath, Kali P, 1992. "A Direct Proof of the Existence of Pure Strategy Equilibria in Games with a Continuum of Players," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 2(3), pages 427-433, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    2. Hatfield, John William & Kominers, Scott Duke, 2015. "Multilateral matching," Journal of Economic Theory, Elsevier, vol. 156(C), pages 175-206.
    3. Ostrovsky, Michael & Schwarz, Michael, 2018. "Carpooling and the Economics of Self-Driving Cars," Research Papers 3636, Stanford University, Graduate School of Business.
    4. Chao Huang, 2021. "Stable matching: an integer programming approach," Papers 2103.03418, arXiv.org, revised Apr 2022.
    5. Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2012. "The Roommate Problem is More Stable than You Think," Working Papers hal-03588302, HAL.
    6. Gerasimos T. Soldatos, 2020. "Merit goods and excise taxation in quasilinear markets for complementary private consumption," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 551-566.
    7. Hashimoto, Tadashi, 2018. "The generalized random priority mechanism with budgets," Journal of Economic Theory, Elsevier, vol. 177(C), pages 708-733.
    8. Allen, Roy, 2022. "Injectivity and the law of demand," Economics Letters, Elsevier, vol. 215(C).
    9. repec:hal:spmain:info:hdl:2441/3sd5loegec9d3o795888da61tp is not listed on IDEAS
    10. Elizabeth Baldwin & Paul Klemperer, 2019. "Understanding Preferences: “Demand Types”, and the Existence of Equilibrium With Indivisibilities," Econometrica, Econometric Society, vol. 87(3), pages 867-932, May.
    11. Chao Huang, 2022. "Firm-worker hypergraphs," Papers 2211.06887, arXiv.org, revised Nov 2023.
    12. Danilov, V. & Koshevoy, G. & Lang, C., 2013. "Equilibria in Markets with Indivisible Goods," Journal of the New Economic Association, New Economic Association, vol. 18(2), pages 10-34.
    13. Jean Flemming, 2018. "Costly Commuting and the Job Ladder," 2018 Meeting Papers 100, Society for Economic Dynamics.
    14. Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2019. "On Human Capital and Team Stability," Journal of Human Capital, University of Chicago Press, vol. 13(2), pages 236-259.
    15. Ahmadzadeh, Amirreza & Kamali-Shahdadi, Behrang, 2023. "Matching Unskilled/Skilled Workers to Firms Facing Budget Constraints," TSE Working Papers 23-1446, Toulouse School of Economics (TSE).
    16. Chao Huang, 2022. "Two-sided matching with firms' complementary preferences," Papers 2205.05599, arXiv.org, revised May 2022.
    17. Yannai A. Gonczarowski & Scott Duke Kominers & Ran I. Shorrer, 2019. "To Infinity and Beyond: A General Framework for Scaling Economic Theories," Papers 1906.10333, arXiv.org, revised Apr 2023.
    18. Pierre-Andr'e Chiappori & Alfred Galichon & Bernard Salani'e, 2021. "On Human Capital and Team Stability," Papers 2102.06487, arXiv.org.
    19. Martin Bichler & Vladimir Fux & Jacob Goeree, 2018. "A Matter of Equality: Linear Pricing in Combinatorial Exchanges," Information Systems Research, INFORMS, vol. 29(4), pages 1024-1043, December.
    20. repec:spo:wpmain:info:hdl:2441/3sd5loegec9d3o795888da61tp is not listed on IDEAS
    21. Chao Huang, 2021. "Unidirectional substitutes and complements," Papers 2108.12572, arXiv.org.

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    More about this item

    Keywords

    Walrasian equilibrium; quasilinear utility; indivisible goods; continuum economies; complementary preferences;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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