On the existence of approximated equilibria in discontinuous economies

DOI10.1016/J.JMATECO.2004.12.003MaRDI QIDQ2387403zbMATH OpenOpenAlexFDO

Authors Philippe Bich

Publication date 2 September 2005

Published in Journal of Mathematical Economics (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.jmateco.2004.12.003

zbMATH Keywords

DiscontinuityFixed pointGeneral equilibriumIncomplete markets

Mathematics Subject Classification ID

Applications of operator theory in optimization, convex analysis, mathematical programming, economics (47N10) General equilibrium theory (91B50)

Review text

It is well known that equilibria need not exist in the standard general equilibrium model with incomplete markets (GEI) because of the discontinuity of the market excess demand at certain prices. In this paper it is shown, that if the aggregate excess demand of the considered economy satisfies (besides usual conditions) a special (economically relevant) weak continuity condition, then an existence theorem holds for skillfully defined approximated equilibria (which are generically real equilibria). The point of the (not so simple) proof is an extension of Brouwer's fixed point theorem (and ist variational form), such that it holds also for the considered weaker continuity. In the proof the weak continuity is extended to a continuous version and then topological degree theory is applied.

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Cites work

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Cited in

(9)

• Asymptotical behavior of finite and possible discontinuous economies
• Equilibria with discontinuous preferences: new fixed point theorems
• Existence of Walrasian equilibria with discontinuous, non-ordered, interdependent and price-dependent preferences
• Existence of equilibria based on continuity and boundary behaviour
• On approximate cores of non-convex economies
• scientific article; zbMATH DE number 2157165 (Why is no real title available?)
• EXISTENCE OF AN EQUILIBRIUM WITH DISCONTINUOUS PRICES, ASYMMETRIC INFORMATION, AND NONTRIVIAL INITIAL σ‐FIELDS
• Arrow-Hahn economic models with weakened conditions of continuity
• On the orientability of the asset equilibrium manifold

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