Differentiability of equilibria for linear exchange economies (Q5949885): Difference between revisions

The paper deals with a model of a linear exchange economy, i.e., an economy with agents having preferences representable by linear utility functions. It is connected with the authors' previous paper [ibid. 109, 237-263 (2001; Zbl 0992.91062)]. Here, the attention is focused on the properties of equilibrium prices and initial endowment when both components vary. An open dense subset of full measures of the endowment and utility vector space on which the equilibrium price vector is a real analytic function, is characterized. An explicit formula for the computation of the equilibrium around a point where it is known, is presented. It is also shown that the equilibrium is locally Lipschitzian on the whole space that the considered economies satisfy the property of gross substitution.