On the Existence of Price Equilibrium in Economies with Excess Demand Functions

Guoqiang Tian

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides a price equilibrium existence theorem in economies where commodities may be indivisible and aggregate excess demand functions may be discontinuous. We introduce a very weak notion of continuity, called recursive transfer lower semi-continuity, which is weaker than transfer lower semi-continuity and in turn weaker than lower semicontinuity. It is shown that the condition, together with Walras’s law, guarantees the existence of price equilibrium in economies with excess demand functions. The condition is also necessary, and thus our results generalize all the existing results on the existence of price equilibrium in economies where excess demand is a function.

Keywords: Existence of price equilibrium; recursive transfer lower semi-continuity; discontinuity; excess demand function (search for similar items in EconPapers)
JEL-codes: C62 C72 D44 D61 D82 (search for similar items in EconPapers)
Date: 2010-11, Revised 2014-07
New Economics Papers: this item is included in nep-mic
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Related works:
Journal Article: On the existence of price equilibrium in economies with excess demand functions (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:57930

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