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Some sufficient conditions for the existence of a competitive equilibrium in economies with satiated consumers

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  • Norihisa Sato

    (Graduate School of Economics, Waseda University)

Abstract

It is well known that a competitive equilibrium may fail to exist when consumers' preferences are possibly satiated. In this paper, we provide three new sufficient conditions for the existence of a competitive equilibrium in the standard Arrow-Debreu pure exchange economy with satiated consumers. We first consider a condition that restricts the behavior of the excess demand correspondence on the boundary of a certain subset of the price domain. Another two sufficient conditions are obtained by using the existence result under this condition.

Suggested Citation

  • Norihisa Sato, 2008. "Some sufficient conditions for the existence of a competitive equilibrium in economies with satiated consumers," Economics Bulletin, AccessEcon, vol. 3(73), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-08c60003
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    References listed on IDEAS

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    1. Andreu Mas-Colell, 1992. "Equilibrium Theory with Possibly Satiated Preferences," Palgrave Macmillan Books, in: Mukul Majumdar (ed.), Equilibrium and Dynamics, chapter 9, pages 201-213, Palgrave Macmillan.
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    6. Aldo Montesano, 2001. "Competitive Equilibrium and Pareto-Optimality without Free Disposal," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 3-30.
    7. Lars Tyge Nielsen, 1989. "Asset Market Equilibrium with Short-Selling," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(3), pages 467-473.
    8. Allingham, Michael, 1991. "Existence Theorems in the Capital Asset Pricing Model," Econometrica, Econometric Society, vol. 59(4), pages 1169-1174, July.
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    Cited by:

    1. Sato, Norihisa, 2010. "Satiation and existence of competitive equilibrium," Journal of Mathematical Economics, Elsevier, vol. 46(4), pages 534-551, July.

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    More about this item

    Keywords

    satiation;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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