Existence of an equilibrium in arrowian markets for consumption externalities

Jean-Marc Bonnisseau, Elena del Mercato and Paolo Siconolfi
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Paolo Siconolfi: Graduate School of Business New York

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

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.

Date: 2023-04
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Published in Journal of Economic Theory, 2023, 209, ⟨10.1016/j.jet.2023.105638⟩

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Related works:
Journal Article: 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)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-04205853

DOI: 10.1016/j.jet.2023.105638

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