A. Vandennouweland et al., AXIOMATIC CHARACTERIZATIONS OF THE WALRAS CORRESPONDENCE FOR GENERALIZED ECONOMIES, Journal of mathematical economics, 25(3), 1996, pp. 355-372
Citations number
26
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics,"Mathematical, Methods, Social Sciences
A generalized (pure exchange) economy consists of a list of agents, ut
ility functions and initial endowments for each agent, and a net trade
vector that describes the trade between the economy and the outside w
orld. In this paper we extend the definition of Walras equilibria to g
eneralized economies without free disposal of commodities. An existenc
e result is presented and we provide two axiomatic characterizations o
f Walras allocations based on the axioms of consistency and converse c
onsistency. Also, a characterization of the utility vectors correspond
ing to strictly positive Walras allocations is given. It is shown that
the assumption of free disposal can, for generalized economies, lead
to non-Pareto-optimal Walras allocations.