Indivisible commodities and an equivalence theorem on the strong core

Tomoki Inoue

Journal of Mathematical Economics, 2014, vol. 54, issue C, 22-35

Abstract: We consider a pure exchange economy with finitely many indivisible commodities that are available only in integer quantities. We prove that in such an economy with a sufficiently large number of agents, but finitely many agents, the strong core coincides with the set of expenditure-minimizing Walrasian allocations. Because of the indivisibility, the preference maximization does not imply the expenditure minimization. An expenditure-minimizing Walrasian equilibrium is a state where, under some price vector, all agents satisfy both the preference maximization and the expenditure minimization.

Keywords: Indivisible commodities; Strong core; Expenditure-minimizing Walrasian equilibrium; Core—Walras equivalence (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:54:y:2014:i:c:p:22-35

DOI: 10.1016/j.jmateco.2014.07.002

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