The Debreu private ownership economy with complementary commodities and prices

Agnieszka Lipieta

Economic Modelling, 2010, vol. 27, issue 1, 22-27

Abstract: Let Ep be a Debreu private ownership economy in which there are some complementary commodities. It means that all commodity bundles are contained in the proper subspace V of commodity-space . The production plans maximizing the producers' profits do not have to satisfy the dependency in the qualities of commodities seen in the consumers' plans. It may cause no-existence an equilibrium in economy Ep. The competitive leads, however, to adjustment the production plans to improve the consumers' satisfaction. The procedure of change the production system covering the consumers' requirements is presented. As a result, the model of the private ownership economy with complementary commodities and prices, being the simplification of the initial model, is elaborated. Consequently, the necessary condition for the existence of an equilibrium in the economy Ep is proved.

Keywords: Debreu; economy; Complementary; commodities; Projections (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (4)

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