On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash

Elena del Mercato and Vincenzo Platino

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We consider a general equilibrium model of a private ownership economy with consumption and production externalities. The choices of all agents (households and firms) may affect utility functions and production technologies. The allocation of a competitive equilibrium is a Nash equilibrium. We provide an example showing that, under standard assumptions, competitive equilibria are indeterminate in an open set of the household's endowments. We introduce the model with firms' endowments, in the spirit of Geanakoplos, Magill, Quinzii and Drèze (1990). In our model, firms' endowments impact the technologies and the marginal productivities of the other firms. We then prove that these economies are generically regular in the space of endowments of households and firms.

Keywords: externalities; regular economies; competitive equilibrium à la Nash; private ownership economies (search for similar items in EconPapers)
Date: 2016-12
New Economics Papers: this item is included in nep-mic and nep-upt
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01162039v2
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Citations: View citations in EconPapers (2)

Published in 2016

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Related works:
Journal Article: On the regularity of smooth production economies with externalities: competitive equilibrium à la Nash (2017)
Working Paper: On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash (2017)
Working Paper: On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash (2017)
Working Paper: On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash (2017)
Working Paper: On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash (2016)
Working Paper: On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash (2015)
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