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Existence of Competitive Equilibrium in Unbounded Exchange Economies with Satiation: A Note

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  • Sato Norihisa

    (Waseda University, nrsato@gmail.com)

Abstract

In this note, we extend the result of Sato (2010) to economies with unbounded-from-below choice sets: we prove the existence of a competitive equilibrium (to be exact, a quasi-equilibrium) by assuming "boundary satiation" introduced in Sato (2010) and the "strong compactness of the individually rational utility set" introduced in Martins-da-Rocha and Monteiro (2009). As a result, we obtain a new equilibrium existence theorem that can be applied to the case in which choice sets are unbounded from below and satiation occurs only inside the set of individually rational feasible choices. We also investigate the relationships between boundary satiation and some other conditions concerning satiation provided in the literature.

Suggested Citation

  • Sato Norihisa, 2010. "Existence of Competitive Equilibrium in Unbounded Exchange Economies with Satiation: A Note," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-22, July.
    • Handle: RePEc:bpj:bejtec:v:10:y:2010:i:1:n:30
    DOI: 10.2202/1935-1704.1689
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    References listed on IDEAS

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    1. Allouch, Nizar & Le Van, Cuong & Page, Frank Jr., 2006. "Arbitrage and equilibrium in unbounded exchange economies with satiation," Journal of Mathematical Economics, Elsevier, vol. 42(6), pages 661-674, September.
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    2. Van Quy Nguyen, 2020. "Endowments-regarding preferences," Post-Print halshs-02966848, HAL.
    3. Van Quy Nguyen, 2020. "Endowments-regarding preferences," Documents de travail du Centre d'Economie de la Sorbonne 20017, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Nguyen, Van-Quy, 2021. "Endowment-regarding preferences," Journal of Mathematical Economics, Elsevier, vol. 94(C).
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    6. Van Quy Nguyen, 2020. "Endowments-regarding preferences," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02966848, HAL.

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