Edgeworth and Walras equilibria of an arbitrage-free exchange economy (Q1424213)

The paper contributes to the theory of market equilibria by two theoretical results regarding the Edgeworth equilibria. The first one means a direct proof of their existence for exchange economies with consumption sets which may be unbounded from below, under the assumption of compactness of individually rational utility set. The second result formulates the conditions under which the continuous prices can decentralize the Edgeworth equilibrial allocations. This result is formulated for finite and for infinite dimensional settings. The theoretical conclusions are illustrated by some finance models.