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Satiation and Equilibrium in Unbounded Exchange Economies

Author

Listed:
  • Guangsug Hahn

    (POSTECH)

  • Dong Chul Won

    (Ajou University)

Abstract

We show the existence of equilibrium in an economy where preferences may be non-ordered, satiated, and consumption sets need not be bounded from below. Satiation is allowed to occur inside the set of attainable and individually rational allocations. The paper provides a unified approach to the classical general equilibrium theory with non-ordered preferences, the arbitrage-based literature with unbounded choice sets, and the asset pricing models with satiated preferences.

Suggested Citation

  • Guangsug Hahn & Dong Chul Won, 2009. "Satiation and Equilibrium in Unbounded Exchange Economies," Korean Economic Review, Korean Economic Association, vol. 25, pages 349-366.
    • Handle: RePEc:kea:keappr:ker-20091231-25-2-07
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Short-Selling; Satiation; Non-Ordered Preferences; Arbitrage; Competitive Equilibrium; CAPM;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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