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Indivisible commodities and an equivalence theorem on the strong core

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  • Inoue, Tomoki

Abstract

We consider a pure exchange economy with finitely many indivisible commodities that are available only in integer quantities. We prove that in such an economy with a sufficiently large number of agents, but finitely many agents, the strong core coincides with the set of expenditure-minimizing Walrasian allocations. Because of the indivisibility, the preference maximization does not imply the expenditure minimization. An expenditure-minimizing Walrasian equilibrium is a state where, under some price vector, all agents satisfy both the preference maximization and the expenditure minimization.

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  • Inoue, Tomoki, 2014. "Indivisible commodities and an equivalence theorem on the strong core," Journal of Mathematical Economics, Elsevier, vol. 54(C), pages 22-35.
    • Handle: RePEc:eee:mateco:v:54:y:2014:i:c:p:22-35
    DOI: 10.1016/j.jmateco.2014.07.002
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    References listed on IDEAS

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    Cited by:

    1. Michael Florig & Jorge Rivera, 2015. "Existence of a competitive equilibrium when all goods are indivisible," Working Papers wp403, University of Chile, Department of Economics.
    2. Florig, Michael & Rivera, Jorge, 2017. "Existence of a competitive equilibrium when all goods are indivisible," Journal of Mathematical Economics, Elsevier, vol. 72(C), pages 145-153.

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