Mas-Colell Price Equilibrium Existence Theorem the Case of Smooth Disposal

Paulo Monteiro and R. Tourky

Papiers d'Economie Mathématique et Applications from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper presents a surprising example. It shows that lattice theoretic properties in Mas-Colell's (1986) seminal work are relevant to the existence of equilibrium problem even when commodity space is finite dimensional. The paper provides an example of an economy with three commodities and two consumers. In this example, all of Mas-Colell's assumptions hold expect that the ordering of the commodity space is not a lattice. However, in our economy there is no Walrasian equilibrium and the second theorem of welfare economics fails. Ordered commodity spaces that are not vector lattice arise naturally when there are constraints on disposal technologies ; examples include waste discharge restrictions and pollution disposal.

Keywords: CONSUMERS; TECHNOLOGY; PRICES (search for similar items in EconPapers)
JEL-codes: D51 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2000
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:pariem:2000.82

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