AbstractThe aim of this paper is to prove the existence of a competitive equilibrium for an economy with a measure space of consumers, a measure space of suppliers, an infinite dimensional commodity space, and interdependent preferences without order and convexity.
AbstractWe prove the existence of an equilibrium in an economy with a measure space of agents and a separable Banach commodity space whose positive cone admits an interior point. We follow the truncation argument given at the end of Yannelis [Yannelis, N.C., 1987. Equilibria in non-cooperative models of competition, J. Econ. Theory 41, 96–111] and the abstract economy approach as in Shafer [Shafer, W., 1976. Equilibrium in economies without ordered preferences or free disposal, J. Math. Econ. 3, 135–137] and Khan and Vohra [Khan, M.A., Vohra, R., 1984. Equilibrium in abstract economies without ordered preferences and with a measure space of agents, J. Math. Econ. 13, 133–142], which allows preferences to be interdependent. Our result may be viewed as an extension of the result in Kahn and Yannelis [Khan, M.A., Yannelis, N.C., 1991. Equilibria in markets with a continuum of agents and commodities. In: Khan, M.A., Yannelis, N.C. (Eds.), Equilibrium Theory in Infinite Dimensional Spaces, Springer-Verlag, Tokyo, pp. 233–248] employing production and allowing preferences to be interdependent. We utilize Mazur’s lemma at the crucial point in the truncation argument. We assume that the preference correspondence is representable by an interdependent utility function. The method in the present paper does not rely on the usual weak openness assumption on the lower sections of the preference correspondence.
AbstractRecently, the author has established an equilibrium existence theorem for economies with a measure space of consumers, a measure space of producers, an infinite-dimensional separable commodity space whose positive cone admits an interior point, and interdependent preferences without order and convexity. The aim of this paper is to establish similar results for the non-separable commodity space l∞.