Equilibrium in an exchange economy with multiple indivisible commodities and money (Q1567184): Difference between revisions

The author considers an exchange economy in which there are a finite number of agents and a finite number of indivisible commodities. Each agent initially owns several units of each type of commodities and money. Agent's preferences depend on commodities and money. Money is a perfectly divisible commodity. Two theorems of a competitive equilibrium existence are proved under some conditions on utility functions. They have such meaning as: no agent desires more than one unit of each type of indivisible commodities, initial endowment is at least as good as any state without consumption, each utility function has some separable property. Also the case when each agent initially owns only one unit of indivisible commodity is studied. The results presented in the paper are declared as a generalization of those obtained by Quinzi (1984), Yamamoto (1987) and van der Laan et al (1997).