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Equilibrium Correspondence of Linear Exchange Economies

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  • M. Florig

    (CERMSEM, Université de Paris 1)

Abstract

According to Mertens (Ref. 1), the set of equilibrium prices in a linear exchange economy is a convex polyhedral cone (after adding {0}). We give a constructive proof of this fact. Then, we establish a lower-semicontinuity property of the equilibrium price correspondence. The set of equilibrium allocations is a closed, convex polyhedron. We give a characterization of this set.

Suggested Citation

  • M. Florig, 2004. "Equilibrium Correspondence of Linear Exchange Economies," Journal of Optimization Theory and Applications, Springer, vol. 120(1), pages 97-109, January.
    • Handle: RePEc:spr:joptap:v:120:y:2004:i:1:d:10.1023_b:jota.0000012734.59679.9a
    DOI: 10.1023/B:JOTA.0000012734.59679.9a
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    References listed on IDEAS

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    1. Florig, Michael, 2001. "Hierarchic competitive equilibria," Journal of Mathematical Economics, Elsevier, vol. 35(4), pages 515-546, July.
    2. Bottazzi, Jean-Marc & De Meyer, Bernard, 2003. "A market game for assets and taxed investors," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 657-675, July.
    3. Monique Florenzano & Emma Moreno-García, 2001. "Linear exchange economies with a continuum of agents," Spanish Economic Review, Springer;Spanish Economic Association, vol. 3(4), pages 253-272.
    4. J. M. Bonnisseau & M. Florig & A. Jofré, 2001. "Differentiability of Equilibria for Linear Exchange Economies," Journal of Optimization Theory and Applications, Springer, vol. 109(2), pages 265-288, May.
    5. Gale, David, 1976. "The linear exchange model," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 205-209, July.
    6. Bernard de Meyer & Jean-Marc Bottazzi, 2003. "A market game for assets and taxed investors," Post-Print hal-00259739, HAL.
    7. J. M. Bonnisseau & M. Florig & A. Jofré, 2001. "Continuity and Uniqueness of Equilibria for Linear Exchange Economies," Journal of Optimization Theory and Applications, Springer, vol. 109(2), pages 237-263, May.
    8. Mertens, J. F., 2003. "The limit-price mechanism," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 433-528, July.
    9. Eaves, B. Curtis, 1976. "A finite algorithm for the linear exchange model," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 197-203, July.
    10. Michael Florig, 2003. "Arbitrary small indivisibilities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(4), pages 831-843, November.
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    Cited by:

    1. Jean-Marc Bonnisseau & Michael Florig, 2003. "Existence and optimality of oligopoly equilibria in linear exchange economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(4), pages 727-741, November.
    2. Devanur, Nikhil R. & Garg, Jugal & Végh, László A., 2016. "A rational convex program for linear Arrow-Debreu markets," LSE Research Online Documents on Economics 69224, London School of Economics and Political Science, LSE Library.
    3. Simina Br^anzei & Nikhil R. Devanur & Yuval Rabani, 2019. "Proportional Dynamics in Exchange Economies," Papers 1907.05037, arXiv.org, revised Sep 2023.
    4. Camelia Bejan, 2008. "The objective of a privately owned firm under imperfect competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(1), pages 99-118, October.

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