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The Walrasian objection mechanism and Mas-Colell’s bargaining set in economies with many commodities

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  • Niccolò Urbinati

    (Università Ca’ Foscari Venezia)

Abstract

We study the Walrasian objection mechanism in the framework of economies with a measure space of agents and a separable Banach space of commodities whose positive cone has a non-empty interior. We provide several characterizations of Walrasian objections and use them to study the bargaining set of the economy, as defined in Mas-Colell (J Math Econ 18(2):129–139, 1989). Our main result shows that whenever the measure space of agents is saturated, every non-competitive allocation can be blocked with a Walrasian objection. This implies that the bargaining set, the core and the set of competitive allocations are equivalent solution concepts.

Suggested Citation

  • Niccolò Urbinati, 2023. "The Walrasian objection mechanism and Mas-Colell’s bargaining set in economies with many commodities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(1), pages 45-68, July.
    • Handle: RePEc:spr:joecth:v:76:y:2023:i:1:d:10.1007_s00199-022-01454-0
    DOI: 10.1007/s00199-022-01454-0
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    More about this item

    Keywords

    Walrasian objections; Bargaining set; Infinite dimensional commodity spaces; Saturation property; Lyapunov’s theorem;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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