G. Vanderlaan et al., EXISTENCE OF AN EQUILIBRIUM IN A COMPETITIVE ECONOMY WITH INDIVISIBILITIES AND MONEY, Journal of mathematical economics, 28(1), 1997, pp. 101-109
Citations number
11
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics,"Mathematical, Methods, Social Sciences",Mathematics
In this paper we introduce a model of an exchange economy with indivis
ible goods and money, There are finitely many agents each of whom owns
one unit of finitely many different types of indivisible goods and a
certain amount of money. Each type of indivisible goods is subject to
quality differentiation. We demonstrate that under fairly mild conditi
ons on demand the economy has a price equilibrium. The proof is based
on a generalization of the well-known lemma of Knaster, Kuratowski and
Mazurkiewicz (KKM) in combinatorial topology, The results in the pape
r generalize those of Gale in the case of just one type of indivisible
good present in the economy.