Characterization of an extended Walrasian concept for open economies

The consistency axiom, which is quite prominent in the framework of concept s of cooperative games, can be used to characterize concepts for economies as well. Dagan [Dagan, N., 1996b. Consistency and the Walrasian allocations correspondence. A revised version of Economics Working Paper No. 151, Univ ersitat Pompeu Fabra, Barcelona, Spain.] and van den Nouweland et al. [van den Nouweland, A., Peleg, B., Tijs, S., 1996. Axiomatic characterization of the Walras correspondence for generalized economies. Journal of Mathematic al Economics 25, 355-372.] used the setting of open economies to give axiom atic characterizations of an extension of the Walras correspondence. Here, we will characterize the proportional Walrasian concept, an extension which was proposed by Thomson [Thomson, W., 1992. Consistency in exchange econom ies. Mimeo, Department of Economics, University of Rochester, Rochester, NY .] and which is non-empty on a much bigger class of open economies. Apart f rom consistency properties and other frequently used axioms, we also employ an axiom on distribution. (C) 2000 Elsevier Science S.A. All rights reserv ed. JEL classification: D51.