Clubs and the market
Article Abstract:
A general equilibrium model with exchange and club formation is defined. The characteristics of this model is that agents can trade multiple private goods widely in the market, care about the characteristics of other members of their clubs and can belong to several clubs. Clubs are finite while the space of agents is a continuum. The results showed that the core coincides with the set of equilibrium states and competitive equilibria exist. Modeling club memberships and expressing the notion that membership choices are consistent across the population is the central subtlety.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1999
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Edgeworth's conjecture with infinitely many commodities: L
Article Abstract:
Equivalence core and the set of Walrasian allocations have been used as a basic test of perfect economic competition. A study of these tests used core convergence theorem models, such as those of Debreu-Scarf (1963), and Aumann's (1964) to establish the competitiveness of core allocations in economies with infinite dimensional space of commodities and large number of finite agents. Analyses showed that treating the various types of labor as elements of an infinite dimensional commodity space can demonstrate labor endowments of specific individuals are close substitutes.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1997
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