The core-Walras equivalence (Q794543)

This paper presents a general Equivalence Theorem of the core and the set of Walras equilibria of an exchange economy based on a Boolean algebra, the elements of which are thought of as coalitions. The Theorem comprises most previous Equivalence Theorems as special cases - whether in terms of allocations in an economy weighted by a \(\sigma\)-additive or finitely additive measure \(\nu\) on the set of agents or in terms of \(\sigma\)- additive measures. This flexibility is possible because the admitted allocation measures shall form a spliceable cone H, whose main property is as follows: If a is a coalition, the endowment \(\nu(a)\) has at least one positive coordinate and \(\alpha,\beta\in H\), then \(\gamma\in H\), where \(\gamma | a=\alpha | a\) and \(\gamma| \bar a=\beta | \bar a\). The Theorem is extended to rings by extension of the ring to an algebra. Examples show in particular again, that the nonatomicity of \(\nu\) is the key assumption to get the Equivalence Theorem. The authors are in error when quoting upon this referee's paper [J. Math. Econ. 8, 221-240 (1981; Zbl 0461.90010)]. There (p.223), the finitely additive Liapunov Theorem is already found for subalgebras, not only for the power set algebra, hence by Stone for general Boolean algebras. Further, the unpublished paper by D. Brown (1977) was not known to this referee. In addition: whereas D. Brown translates into non standard economies and uses a theorem by Brown-Robinson there, the referee's paper remains standard using correspondences.