Other-Regarding Preferences with a Wealth Dependent Bound on Transfers: Existence of Equilibria

Maria Bernadette Donato (), Vincenzo Platino () and Antonio Villanacci ()
Additional contact information
Maria Bernadette Donato: University of Messina
Vincenzo Platino: University of Naples Federico II and CSEF, https://csef.it/people/vincenzo-platino/
Antonio Villanacci: University of Florence

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: We consider a pure exchange economy with a finite number of commodities and households, in which preferences are affected by the welfare of others—measured in terms of wealth—and households are allowed to transfer resources to one another. Our goal is to establish the existence of equilibria under more general and realistic assumptions than those adopted in the literature. Specifically, we substitute an ad hoc limit on individual transfers for a bound that is dual-purpose: it satisfies the mathematical criteria necessary for our proof and adheres to the legal frameworks typically prevalent across various countries. This approach allows us to prove existence under standard assumptions of continuity and quasi-concavity, rather than the stronger assumptions of Lipschitz continuity and concavity imposed in the literature.

Keywords: Exchange economy; interdependent preferences; transfers; competitive equilibrium; generalized game approach. (search for similar items in EconPapers)
JEL-codes: C62 D50 D51 D62 (search for similar items in EconPapers)
Date: 2026-10-17
New Economics Papers: this item is included in nep-evo
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.csef.it/WP/wp798.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:798

Access Statistics for this paper

More papers in CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Maria Carannante ().