Open AccessWalrasian equilibrium in large, quasilinear markets
Author(s) -
Azevedo Eduardo M.,
Weyl E. Glen,
White Alexander
Publication year - 2013
Publication title -
theoretical economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.404
H-Index - 32
eISSN - 1555-7561
pISSN - 1933-6837
DOI - 10.3982/te1060
Subject(s) - economics , mathematical economics , general equilibrium theory , microeconomics , distribution (mathematics) , mathematics , mathematical analysis
In an economy with indivisible goods, a continuum of agents, and quasilinear utility, we show that equilibrium exists regardless of the nature of agents' preferences over bundles. This contrasts with results for economies with a finite number of agents, which require restrictions on preferences (such as substitutability) to guarantee existence. When the distribution of preferences has full support, equilibrium prices are unique.