Equilibrium theory with satiable and non-ordered preferences (Q553535)

The paper investigates the existence of equilibrium in an asset market exchange economy \( E=\{(X_i,e_i,P_i): i\in I\} \) where \( I \) is the finite set of agents, \(X_i \subset {\mathbb R}^l\) is the choice set of agent \(i\in I\) and \( l \) is the number of assets, \(e_i \in {\mathbb R}^l\) is the initial endowment, and \(P_i\) is a preference correspondence from \( X=\prod_{i\in I}X_i \) to \( 2^{X_i} \). This economy was described in the previous paper by the authors [J. Math. Econ. 44, No. 11, 1266--1283 (2008; Zbl 1151.91066)] where the existence of equilibrium has been proved under some assumptions about the economy. There were two main assumptions: the preferences were not supposed to be transitive or complete and the consumption set of each agent was not supposed to be bounded from below. The difference of assumptions about economy \( E \) in the refereed paper concerns the properties of the set of feasible and individually rational allocations \(H\). The previous assumption of non-satiation of the preferences on \(H\) is replaced by the assumption of boundedness of \(H\). One class of capital asset pricing models with such properties are models where Knightian uncertainty makes preferences incomplete while the absence of riskless assets makes them satiable.