Existence of competitive equilibria with externalities: a differential viewpoint

Elena del Mercato

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: We consider a class of pure exchange economies with externalities. The consumption set and the preferences of each household depend on his initial endowment and on the actions of the other households. We give a definition of competitive equilibrium with externalities which includes as particular case the classical definition. Under differentiability and boundary conditions, we show that for all economies there exist competitive equilibria with strictly positive consumptions and prices. Our approach is based on homotopy arguments in differential topology, where it is possible describe equilibria in terms of first order conditions and market clearing conditions

Keywords: Equilibre général; effets externes; équilibre concurrentiel; approche par homotopie (search for similar items in EconPapers)
JEL-codes: C62 D11 D50 D62 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2004-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Existence of competitive equilibria with externalities: A differential viewpoint (2006)
Working Paper: Existence of competitive equilibria with externalities: A differential viewpoint (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:b04078

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