Possibility functions and regular economies

Jean-Marc BONNISSEAU () and Elena Laureana del Mercato ()

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: In the spirit of Smale's work, we consider pure exchange economies with general consumption sets. In this paper, the consumption set of each household is described in terms of a function called possibility function. The main innovation comes from the dependency of each possibility function with respect to the individual endowment. We prove that, generically in the space of endowments and possibility functions, economies are regular. A regular economy has only a finite number of equilibria which locally depend on endowments and possibility functions in a continuous manner.

Keywords: General economic equilibrium; consumption possibility; regular economy. (search for similar items in EconPapers)
JEL-codes: C62 D11 D50 (search for similar items in EconPapers)
Date: 2007-03, Revised 2007-05

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Related works:
Working Paper: Possibility functions and regular economies (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:mse:cesdoc:b07033

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