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Walras and dividends equilibrium with possibly satiated consumers

Nizar Allouch and Cuong Le Van ()
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Cuong Le Van: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: The main contribution of the paper is to provide a weaker non-satiation assumption than the one commonly used in the literature to ensure the existence of competitive equilibrium. Our assumption allows for satiation points inside the set of individually feasible consumptions, provided that the consumer has satiation points available to him outside this set. As a result, we show the concept of equilibrium with dividends (See Aumann and Dreze (1986), Mas-Collel (1992)) is pertinent only when the set of satiation points is included in the set of individually feasible consumptions. Our economic motivation stems from the fact that in decentralized markets, increasing the incomes of consumers through dividends, if it is possible, is costly since it involves the intervention of a social planner. Then, we show, in particular, howin securities markets our weak nonsatiation assumption is satisfied byWerner's (1987) assumption.

Keywords: Satiation; Dividends; Equilibrium; Exchange Economy; Short-selling (search for similar items in EconPapers)
Date: 2008-09
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00101189v2
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Published in Journal of Mathematical Economics, Elsevier, 2008, 44 (9-10), pp.907-918. ⟨10.1016/j.jmateco.2006.09.005⟩

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Related works:
Journal Article: Walras and dividends equilibrium with possibly satiated consumers (2008) Downloads
Working Paper: Walras and dividends equilibrium with possibly satiated consumers (2008) Downloads
Working Paper: Walras and dividends equilibrium with possibly satiated consumers (2008) Downloads
Working Paper: Walras and dividends equilibrium with possibly satiated consumers (2008) Downloads
Working Paper: Walras and dividends equilibrium with possibly satiated consumers (2008) Downloads
Working Paper: Walras and dividends equilibrium with possibly satiated consumers (2008) Downloads
Working Paper: Walras and Dividends Equilibrium with Possibly Satiated Consumers (2006) Downloads
Working Paper: Walras and Dividends Equilibrium with Possibly Satiated Consumers (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00101189

DOI: 10.1016/j.jmateco.2006.09.005

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