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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, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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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 in 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 social planner. Then, we show, in particular, how in securities markets our weak nonsatiation assumption is satisfied by Werner's (1987) assumption.

Keywords: Satiation; dividends; exchange economy; short-selling; Saturation; dividendes; économie d'échange; ventes à découvert (search for similar items in EconPapers)
Date: 2008-01
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00241543
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Published in 2008

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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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