Indivisible goods, equilibrium and convex economies

Luciano Méndez-Naya and José Méndez-Naya

Journal of Economic Theory, 2024, vol. 222, issue C

Abstract: We study the existence of competitive equilibria in economies with indivisible goods. The first result provides a novel sufficient condition for an economy with indivisible goods to have competitive equilibrium. This condition states that the cooperative game associated with the economy has a non-empty core. Crucially, this sufficient condition is also necessary when the economy is convex. This characterization implies that every two-agent convex economy has at least one competitive equilibrium.

Keywords: Competitive equilibrium; Indivisibles; Convexity; Cooperative games (search for similar items in EconPapers)
JEL-codes: C78 D51 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:222:y:2024:i:c:s0022053124001364

DOI: 10.1016/j.jet.2024.105930

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