IDEAS home Printed from https://ideas.repec.org/a/mul/jqat1f/doi10.1427-3687y2001i1p3-30.html
   My bibliography  Save this article

Competitive Equilibrium and Pareto-Optimality without Free Disposal

Author

Listed:
  • Aldo Montesano

Abstract

Non free-disposal equilibrium is examined mainly using the notion of weak equilibrium (i.e., consumers' budget constraints are equalities by definition). The existence of a competitive equilibrium and its Pareto-optimality are investigated both for a pure-exchange economy and for a production economy. The assumptions for the existence of a weak equilibrium are weaker than the usual assumptions for a strong non free disposal-equilibrium or for a free disposal-equilibrium: in particular, the absence of a satiation consumption is not required nor is the convexity of preferences (weak convexity is sufficient). The weak (strong) Pareto-optimality of a weak equilibrium is demonstrated assuming that all consumers weakly (strongly) dislike smaller nominal wealth (all consumers always weakly dislike smaller nominal wealth in a strong equilibrium, which is always also a weakly Pareto-optimal weak equilibrium).

Suggested Citation

  • Aldo Montesano, 2001. "Competitive Equilibrium and Pareto-Optimality without Free Disposal," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 3-30.
    • Handle: RePEc:mul:jqat1f:doi:10.1427/3687:y:2001:i:1:p:3-30
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1427/3687
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.rivisteweb.it/doi/10.1427/3687
    Download Restriction: no
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:jqat1f:doi:10.1427/3687:y:2001:i:1:p:3-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rivisteweb.it/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.