This study contributes to the understanding of trust as a determinant of welfare from the perspective of a microfunded model. In a competitive setup, agents decide whether to participate in a productive interaction and an action therein. Matching in the interaction is anonymous. The maximization...

Exchange economies are defined by a distribution in the space of characteristics where the commodity space is an ordered separable Banach space. We characterize the continuity of the equilibrium correspondence and an associated stability concept which allows us to give a positive answer to an...