General Equilibrium in Economies with Infinite Dimensional Commodity Spaces: A Truncation Approach

Mostly infinite dimensional economies can be considered limits of finite dimensional economies, in particular when we think of time or product differentiation. We investigate conditions under which sequences of quasi-equilibria in finite dimensional economies converge to a quasi-equilibrium in the infinite dimensional economy. It is shown that convergence indeed occurs if the usual continuity assumption concerning the preference relations for finite dimensional commodity spaces is slightly modified.