Gross substitutability and the weak axiom of revealed preference
Article Abstract:
Functions describing excess demand underscore the link between the assumption of gross substitutability and the weak axiom of revealed preference. A condition characterized by constant demand elasticity satisfies the weak axiom when the number of goods is less than four. The weak axiom, for its part, implies a unique production equilibrium. The robustness of economic models partly depends on the uniqueness of equilibria, since a multiplicity of equilibria is usually considered atypical in practice, despite its widespread acceptance by theorists.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 1992
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Vickrey-Clarke-Groves mechanisms in continuum economies: characterization and existence
Article Abstract:
One resource allocation model using finite agents is the dominant strategy implementation model. The Vickrey-Clarke-Groves mechanisms use the concept of marginal productivity to account for the performance of the model in small economies. The application and extension of these mechanisms to the continuum are attempted. In the process, the marginal product mechanism should ensure full appropriation. Each individual is rewarded in proportion to marginal output and the individual, in turn, rewards others accordingly.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 1992
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Incentives and competitive allocations in exchange economies with incomplete markets
Article Abstract:
The problems arising from strategic behavior and incomplete markets in a pure exchange economy are addressed. With both factors acting as probable causes of non-optimal equilibria, proof is derived concerning the Nash non-applicability of the set of constrained Pareto optimal allocations and the set of undominated competitive equilibria. As an alternative, the endowment constrained competitive equilibria is proven to be Nash implementable.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 1995
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