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Competitive General Equilibrium with network externalities

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  • Nieto-Barthaburu, Augusto

Abstract

We identify sufficient conditions for existence of competitive equilibrium with network externalities and indivisibilities. Such combination of externalities and indivisibilities is present in many goods and services with network effects, and it makes existence of equilibrium non-trivial. We provide an existence theorem in a model with a measure space of consumers. Key conditions for existence are anonymity of network effects and dispersion in the economy’s income distribution.

Suggested Citation

  • Nieto-Barthaburu, Augusto, 2021. "Competitive General Equilibrium with network externalities," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:mateco:v:94:y:2021:i:c:s0304406820301439
    DOI: 10.1016/j.jmateco.2020.102466
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