Walrasian equilibrium in large, quasi-linear markets

In an economy with indivisible goods, a continuum of agents and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.

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Year of publication:	2013-05-17
Authors:	Weyl, E. Glen ; White, Alexander ; Azevedo, Eduardo M.
Published in:	Theoretical Economics. - Econometric Society, ISSN 1555-7561. - Vol. 8.2013, 2
Publisher:	Econometric Society
Subject:	Walrasian equilibrium \| quasilinear utility \| indivisible goods \| continuum economies \| complementary preferences

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Extent:	application/pdf
Type of publication:	Article
Classification:	D51 - Exchange and Production Economies
Source:	RePEc - Research Papers in Economics

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