Existence of an equilibrium in arrowian markets for consumption externalities

Jean-Marc Bonnisseau, Elena del Mercato and Paolo Siconolfi

Journal of Economic Theory, 2023, vol. 209, issue C

Abstract: We study the existence of quasi-equilibria and equilibria for pure exchange economies with consumption externalities and Arrowian markets with personalized Lindahl prices. We provide examples showing first that quasi-equilibria and equilibria of the externality economy fail to exist under assumptions guaranteeing existence for economies without externalities. We show that the externality economy has identical equilibrium allocations of an appropriately defined constant returns to scale production economy without externalities. We exploit this equivalence to map sufficient conditions for the existence of quasi-equilibria and equilibria of the production economy into sufficient conditions of the pure exchange economy with externalities, thereby unveiling suitable irreducibility conditions and survival conditions.

Keywords: Consumption externalities; Markets for externalities; Existence of an equilibrium; Irreducibility and survival (search for similar items in EconPapers)
JEL-codes: C62 D50 D62 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053123000340
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Existence of an equilibrium in arrowian markets for consumption externalities (2023)
Working Paper: Existence of an equilibrium in arrowian markets for consumption externalities (2023)
Working Paper: Existence of an equilibrium in arrowian markets for consumption externalities (2023)
Working Paper: Existence of an Equilibrium in Arrowian Markets for Consumption Externalities (2022)
Working Paper: Existence of an Equilibrium in Arrowian Markets for Consumption Externalities (2022)
Working Paper: Existence of an Equilibrium in Arrowian Markets for Consumption Externalities (2022)
Working Paper: Existence of an Equilibrium in Arrowian Markets for Consumption Externalities (2022)
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:eee:jetheo:v:209:y:2023:i:c:s0022053123000340

DOI: 10.1016/j.jet.2023.105638

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().